GIZMONDO MONEY LAUNDERING OP
In my 2015
Interstellar Pirates blog, I had written about this Gizmondo fiasco, and how several of the execs currently involved in Star Citizen were a part of it. Basically, it ended up being a major money laundering operation.
Five of the six top execs involved with
Gizmondo, Chris Roberts, his brother Erin Roberts, their lifelong friends, Nick & Simon Elms (brothers), Derek Senior – all from Manchester – through their previous company
Warthog (which made
Starlancer, a space combat game by the Roberts bros), were associated with the company. Simon Elms, the CFO of Foundry 42, was also the CFO for Warthog which was
bought by Gizmondo, and became Gizmondo Texas. Gizmondo had previously bought Tiger Telematics which was used as the entity company to purchase Warthog.
Gizmondo was a money laundering front for the Swedish Uppsala mafia headed by Swedish Gangster named “Fat Steve”. Along with his partner Mikael Ljungman, they bought the company. Simon Elms was the CFO for Gizmondo since the begining and he was also director of several companies, including Virtual Poker (of which both Simon Elms and Erin Roberts were officers). That company was quietly dissolved in early 2008, while Gizmondo went bankrupt later that same year.
Swedish newspapers reported that, among other things, the crooks who founded Gizmondo were previously involved in various illegal activities. Those included distributing counterfeit money, blackmail, extortion and assault. And the icing on the proverbial criminal enterprise cake is that they were debt collectors for the Swedish underworld aka the Uppsala mafia. Stefan Eriksson, Executive Director at Gizmondo Europe, was previously convicted to five years in prison in 1993 for planning to distribute counterfeit money. He got another five years for trying to defraud financial institution for approximately $3 million. Peter Uf, also a director, was previously sentenced to almost 9 years on similar charges as Stefan. Johan Enander, head of security at Gizmondo, had been convicted for blackmail and aggravated assault. Later in 2009, Mikael went to jail for various financial crimes and Carl Freer was being investigated by the FBI on RICO charges.
When Warthog ended up in financial trouble, it was bailed out by Gizmondo, and then became Gizmondo Texas. The company was supposed to have been working on various casino games which were to be released for the Gizmondo device. These are games that were reportedly never going to be released, since the device was
nothing but a pipe dream. That company was dissolved before this was all publicly known.
After it all collapsed, Simon Elms later went off to Cubic motion, and Nick Elms and some other guys set up Embryonic studios. Erin showed up at some point. Embryonic was later bought by Travelers Tales. Erin and Nick were there for awhile, until Chris showed up with a bag of money and asked his brother and his band of merry men to join him on his epic quest for loot: that being the pipe dream that was to become Star Citizen. Chris then built his brother a brand new, multi-million dollar studio, Foundry 42; and gave him Squadron 42 to develop.
Several media outlets wrote (
1,
2,
3,
4) about this fiasco, and most of it was just so unbelievable. And nobody suspected money laundering at the time. Like, at all.
These are the
same people currently running the Star Citizen project which, now two years overdue and
$145 million (not including loans, investor amounts) later, has thus far failed to deliver either of the games promised.