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Konami and Autumn Games made off with $14 million, says City National Bank

NEWS | ? Comments |

Author: Nicholas Greene  

Looks like Konami and Autumn Games are due in court. City National Bank claims that the two companies defrauded the bank of funds totaling $14 million dollars related to the development of Def Jam Rapstar. According to City National, the two companies lied to the bank to secure Autumn a line of credit, claiming that revenue from sales for the karaoke title would cover the loans.

Instead, they made off with the money, and City National has yet to see a dime of payment on the $14 million in loans. Autumn Games also promised that they'd use a $1 million advance from Konami as a down payment on the loan. Instead, says CNB, they used it on other purchases.

Konami and Autumn Games alleged to have defrauded CNB out of $14 million over Rapstar development

"CNB has recently learned that the reputation of the defendants concerning financial conditions and repayment of the loan-both before and after the loan was approved – were false at the time they were made and that the defendants never had any intention of repaying the loan as promised," says the legal complaint. "Rather than paying game-related proceeds directly to CNB as agreed, the defendants have kept all game-related proceeds for themselves and have refused to remit any such proceeds to CNB. By the time CBN learned the true state of affairs, Autumn had drawn down $13,987,003.15 of the $15 million line…to date, the defendants still have not paid CNB a single penny of the principal amount that is due, and they continue to insist that none of the proceeds from sales of their title are owed to CNB and/or available for repayment." 

Autumn Games RS I LLC, Konami Digital Entertainment Incorporated, CEA Autumn Management LLC, Alex Collmer and Jason Donnell of Autumn Games, and Does 1-25 are all named as defendants. Should City National Bank succeed in their case, they seek over $8.9 million in damages.

Source: Courthouse News Service

Posted on: 05/24/2012 | ? Comments
Tags: Konami, Autumn Games, fraud, fraude, City National Bank, CNB, $14 million, millones, Def Jam, Rapstar, Video Game News
Nicholas Greene

A gamer at heart, Nick started writing when he was a child. He holds a BA in English, works as a freelancer, and loves every minute of it. One day, he hopes to net himself a career in game design - but that's something for the future.

The views of GameDynamo's writers are not necessarily the views of the website as a whole. However, we support freedom of speech and enjoy diverse opinions about video games. Hopefully you do too!

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