Former GameStop head of communications Frank Olivera has pleaded guilty to embezzling nearly $2 million from the video game retailer.
Olivera, who was VP of corporate communications and public affairs, filed his guilty plea November 1 in US District Court in the Northern District of Texas. He admitted to one count of mail fraud, which could carry a sentence of up to 20 years in prison along with a $250,000 fine.
According to the federal indictment, Olivera ran a fraudulent payment scheme from July 2009 to April 2011 in which he processed false invoices for vendor services from a fictitious Nevada-based company, “Cloud Communications LLC,” that he created. Olivera also created a fictitious person named Jennifer Miller to serve as the company's point of contact, the court document says. The federal government alleges that Olivera transferred the funds from Cloud Communications' bank account to his personal bank account, stealing more than $1.9 million through fraudulent invoices.
GameStop is scheduled to report its third-quarter financial results on November 15. In August, the company reported a global sales decrease of 11.1% in the second quarter due to a lack of new game releases.