Video Game Tycoon Imprisoned for Fraud
When David Foley founded Ultracade Technologies, he knew that his company had the potential to become one of the leaders in the arcade gaming industry. Sometimes, life has a way of getting in the way of things. Although several gaming collections and upright arcade machines produced by Ultracade Technologies were starting to be recognized and favored by players, Foley decided to sell the company to Global VR. The company decided to keep Foley on as CTO, giving him the opportunity to keep the vision of his original company alive.
Foley worked for Global VR from 2006 until around 2009. During this time, Global VR became one of the best known publishers of arcade and mobile games in the world. Mr. Foley earned a tidy sum as chief technology officer for Global VR, but for him, it wasn’t enough. Unable to let go of the past, Foley decided to take back the Ultracade Technologies name and reclaim the rights of some of the titles that he produced. The only problem is that Foley never notified Global VR of his plans nor formally sought to repurchase the copyrights. Instead, David illegally copied game collections originally put together by Ultracade Technologies and sell them on the web.
Upon learning that counterfeit copies of Ultracade Technologies games were being offered for sale on the Internet, Global VR got down to the crux of the matter. It was soon discovered that Foley was defrauding Global VR and he was summarily sacked. Foley failed to let his mortgage company know that he was no longer working at the CTO to Global VR, and they granted him approximately $3 million in home loans. The FBI formally charged Foley with dozens of counts of fraud and counterfeiting, in respect to Global VR as well as Foley’s mortgage lender.
After more than five years of hearings, indictments and delayed court dates, David Foley was sentenced to two years in federal prison. Original, the FBI sought to have Foley pay nearly $1 million in fines, but in the end, he was only responsible for paying $500. Shortly before sentencing, Foley had transitioned from producing games for arcade machines into the electronic music industry.