Lawrence Escalante is facing a new lawsuit from investment group Akru Jessy Capital. The lawsuit alleges that Escalante and VGW owe millions in unpaid dividends, options, and fees.
Jasveer Jessy, the principal investor behind the group, filed the lawsuit in the Western Australia Supreme Court last week.
Since the lawsuit, Florida’s Attorney General is also taking action against VGW, seeking compensation for residents who have gambled on the company’s sweepstakes casino platforms, including Chumba Casino, Global Poker, and LuckyLand Slots. The latter was recently shut down in favor of the new platform LuckyLand Casino.
Escalante is also facing a series of criminal charges with his ex-girlfriend alleging he abused and stole from her. When searching his residence, police also found drugs. He now faces a total of 17 charges. While out on bail, he has resigned as VGW CEO amid the ongoing investigation.
Series of Claims Allege VGW & Escalante Owe Millions
Jessy’s LinkedIn profile claims he helped finance VGW’s over $7 billion in revenue in FY2026, although he misspells the company as VWG.
The financial professional claims that Escalante and VGW failed to honor several agreements dating back over a decade. In one example, he claims to be owed 2.6 million company shares, valued at AU$4.60 per share, totaling AU$11.96 million (around $8.5 million).
Additionally, the investment group alleges that VGW owes unpaid historical dividends of AU$6.77 million, unpaid options of AU$286,800, and unpaid bridge capital fees of AU$147,000.
The lawsuit is also seeking an alternative claim valued at AU$59.86 million (around $43 million) for breach of contract arising from an alleged failure to deliver 6.6 million performance shares or options.
A second alternative claim seeks damages for breach of a 2020 settlement that Escalante allegedly rejected. In that claim, Jessy alleged that the investment group is owed payment for work, including financial advice, option structuring, and capital raising, totaling more than AU$10.9 million between 2014 and 2018.
The claim says that VGW received “substantial liquidity and commercial benefit without providing fair remuneration,” according to reporting by WA Today.
VGW Dismisses Claims as Escalante Remains in Shadows
Escalante has not publicly commented on the charges and has kept a low profile since his arrest in February. He took a leave of absence following his arrest, which he described as a “shock.” He then resigned at the start of July.
In February, his 24-year-old ex-girlfriend told police Escalante struck her “in the face with a closed fist.” She said she fell to the ground before claiming Escalante locked himself in a bedroom and stole hundreds of thousands of dollars’ worth of jewelry, including a Cartier watch and bracelet.
After she contacted the police, they went to his house and found 30 grams of cocaine, 18 grams of methamphetamine, and 12.2 grams of ketamine.
In a brief statement, Escalante said, “My arrest on these matters has come as a shock to myself and my family.”
“From the little I know of the allegations at this stage, I can only say that they are untrue and will be defended. I ask that both mine and my family’s privacy be respected, and thank them for their support,” he added.
He has not commented publicly since, but did appear in court in June to request a change to his bail conditions so that he could visit his mother in Sydney.
In his absence, a VGW spokesperson dismissed Jessy’s claims.
“All fees and compensation for the historical services provided by the plaintiffs – dating back more than a decade – were paid at the time in accordance with our agreements with the plaintiffs in 2015,” the spokesperson said.
“VGW stands by its practises, meets all its obligations, and believes this is a baseless claim.”
Escalante’s Troubled Past With Investors
Escalante took full control of the company last year, buying up the remaining 30% of shares he did not already own at a price of AU$5.05 per share.
The move came after months of tensions between Escalante and shareholders. Investors in the company had urged VGW to be more transparent in its financial reporting. Escalante responded by telling critics to “shut the f**k up” and “sell their stakes” if they didn’t trust his leadership.
Amid the domestic violence and drug charges, prosecutors have threatened to freeze his assets. He is reportedly one of the richest men in Australia with a fortune valued at AU$4.5 billion ($3.18 billion),
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