Risk & Compliance

Did PokerTek CFO Have a Wild Card?

A maker of electronic poker machines places its chief financial officer on administrative leave after gambling regulators point to possible misuse ...
Stephen Taub and Tim ReasonAugust 27, 2007

PokerTek, Inc. said in a regulatory filing Friday that it had placed CFO Christopher Daniels on administrative leave after it became aware that Daniels may have inappropriately used the company’s corporate credit card for personal purchases. The company said it was made aware of the purchases during a “regular external gaming review.”

PokerTek makes electronic poker machines that are used in casinos and is licensed and subject to scrutiny from gambling regulators in states where it does business.

“There were some minor, minor expenses that appeared on Chris’s corporate card because of an administrative oversight,” Daniel’s attorney, Will Terpening, of Charlotte-based Anderson Terpening PLLC told CFO.com. “The expenses were for nothing that would seem out of the ordinary.” Terpening told CFO that firms such as PokerTek are closely examined by gambling regulators on an ongoing basis. “Regulators look very closely at the top executives and the expenses they incur for the company.”

PokerTek said placed Daniels on leave pending the outcome of an audit committee investigation launched on August 23 into the historical use of corporate credit cards at the company. “Chris is assisting with company’s investigation and has offered to do everything he can to help,” said Daniel’s attorney. “He certainly denies he ever did anything that was not consistent with his understanding of the company’s policies and practices.”

Terpening added that Daniels had offered to reimburse the company for the charges.