A former executive from GameStop's Texas division has been sentenced to 51 months in prison for embezzling $1.7 million from the company by setting up a shell company, according to an announcement by the U.S. Attorney's Office. Frank Christopher Olivera, the now former Vice President of corporate communications and public affairs at GameStop Texas was convicted this week. He set up a fake company called Cloud Communications LLC and a fake contact person within the company named "Jennifer Miller." That fake company sent GameStop Texas invoices for services rendered (which never actually were rendered, for the record), which Olivera - in his position within GameStop - then directed to be paid.
"Olivera directed GameStop to send the payments from GameStop's offices in Grapevine to Cloud Communications LLC in Las Vegas and Lake Tahoe, Nevada and in Canada," said a statement from the US Attorney's Office.
"In addition to creating a fictitious company, Olivera also created a fictitious person, 'Jennifer Miller,' to serve as the point of contact at Cloud Communications. Upon receipt of payments from GameStop, Olivera would deposit the checks into a bank account held by Cloud Communications and then would transfer the fraudulently obtained funds into his personal bank account."
Eventually a little forensic accounting unraveled Olivera's little scheme. Olivera plead guilty to the charges last November and was sentenced by last Thursday. In addition to the 51 months of jail time, the court has ordered Olivera to pay $134,651 in "additional costs." Olivera has already paid back the majority of the $1.7 million he stole from GameStop.