Problems Continue at Lottery.com as Board Chairman Resigns

By Jessica Whitehouse,
Editor at online-gambling.com

Jessica Whitehouse Editor at online-gambling.com

Jessica Whitehouse is a content expert and editor from Santa Monica, California. At online-gambling.com, she focuses on roulette, blackjack reviews, lottery, and casino payments. Whitehouse is also our leading go-to expert in online gambling in South Africa. In addition, she provides the photo materials for most articles on the site.

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Last updated: November 12, 2022

The problems facing Lottery.com seems to continue. Richard Kivel, who’s the Chairman of the Board, has left the company. Dennis Ruggeri, the Chief Compliance Officer, is also being investigated by the FBI.

Richard Kivel lists a number of events in a letter to the remaining board members of the gaming company. He argues that they made it almost impossible for him to carry out his responsibilities as an independent director. These include claims that some executives engaged in double-dealing, the company’s inability to acquire the financing it needed from an investor, and recover funds from another investor.

The fall of Lottery.com started earlier this year. This was when the company expressed concerns about its ability to continue as a going concern. It revealed this in a regulatory filing with SEC (Securities and Exchange Commission). In October 2021, following a merger with Trident Acquisitions Corp., the operator became public. Its shares have decreased 95.57% year-to-date.

The organization Lottery.com needs capital as a result of its unsecure financial position. Woodford Eurasia Assets Ltd. was supposed to supply an emergency $61 million in several forms, but Richard Kivel informed the board that there was no indication the money would arrive.

Lottery.com announced that Naila Chowdhury and Barney Battles would fill two of the newly created empty director positions, and Matthew Howard McGahan has been appointed as chairman of the board. In his letter, Richard Kivel stated that McGahan took absolute control of the board and ousted him.

Richard Kivel Says He Was Not Informed About FBI Investigation of Dennis Ruggeri

As previously mentioned, Dennis Ruggeri, who’s the Chief Compliance Officer, is the subject of an FBI investigation. However, Richard Kivel contends that interim CEO Sohail Quraeshi was aware of the FBI investigation but kept it from him and the other directors. This extends Lottery.com’s reputation for questionable practices.

Richard Kivel said he was informed that the FBI is currently investigating Daniel Ruggeri. He said that Mr Ruggeri confirmed that this information was accurate and correct when he spoke with him. In his letter, Richard Kivel wrote that Sohail Quraeshi’s failure to disclose this information to the Board before the individual (Daniel Ruggeri) was appointed shows his lack of sound judgment. The precise reason the FBI is investigating Ruggeri is not made clear in Richard Kivel’s letter or media reports.

Allegations of Double-Dealing Brought by Richard Kivel

Richard Kivel’s accusations that investors and other parties are engaging in double dealing have further compounded Lottery.com’s woes. For instance, he asserts that some investors have aligned themselves with Ryan Dickinson, whose employment was terminated by the board.

Furthermore, he mentioned that CEO Sohail Quraeshi has been in negotiations with J. Streicher and is doing so without the approval of the board or the knowledge of their legal counsel. The court has ordered Streicher to pay $16.5 million to the company, and the effort to get that money has cost the firm an amount of $400,000 in legal fees.