Downtown Myrtle Beach arcade manager stole $750K+ from company, suit says
The longtime manager at a downtown Myrtle Beach arcade embezzled more than $750,000 from the company and its former owner after she died, according to a recent lawsuit filing.
Dixie Amusement Co., the family-owned arcade company operating at 911 N. Ocean Blvd. since 1970, and its owner, Richard M. Shelby, filed the complaint against Michael Brian Sutton.
Sutton could not be reached for comment prior to publication.
Sutton had been working at the arcade on and off for years before becoming a full-time employee managing the company’s day-to-day operations in 2016, the complaint states.
Shelby had to take over day-to-day operations in 2023 while Sutton dealt with health issues, according to the suit. When he went to withdraw money from the business account, it had insufficient funds, leading to a full review of the company’s transaction records.
Shelby discovered Sutton had made numerous unauthorized transactions from the company’s account, including electronics, auto parts, gifts and payment of personal debt, the suit states. Sutton also improperly used the credit card of former owner, Mary Shelby, the current owner’s mother, after she died in 2021, the complaint adds.
The improper purchases were often made with regular vendors of the arcade in an attempt to avoid detection, Shelby alleged.
The unauthorized transactions — not including cash also discovered missing from the company’s safe — totaled about $777,000 from December 2021 to October 2023, according to the suit.
Sutton has not been charged with any crimes related to the allegations, according to online court records, and it’s unclear if Shelby notified law enforcement.
When Shelby confronted his employee, Sutton admitted to making the transactions, but argued Mary Shelby previously allowed such purchases, according to the complaint. He fired Sutton in October 2023, and Sutton returned his company-issued laptop with all its data erased, the complaint adds.
Shelby and his company are seeking a judicial order requiring Sutton to repay the misappropriated funds.
