Robert Alexander, a US tech entrepreneur and proprietor of sweepstakes-based online gaming firm Kizzang, has been charged by the Securities and Trade Fee for embezzling firm funds to gasoline his lavish gambling exercise.
He additionally scammed individuals, together with poker participant Patrik Antonius who loaned him $700,000.
In 2013, Alexander created Kizzang, a model that is now in scorching water as a consequence of embezzlement prices. Workers say that the concept of the sweepstakes online gaming enterprise by no means caught on and shortly sufficient, the corporate ran out of funds which have been supposed to assist with gaining new prospects.
Because the proprietor of Kizzang, Alexander used the corporate’s cash for his private bills, reportedly spending about $1.three million of firm funds only for private use, and that included gambling at casinos.
He embezzled firm cash and allegedly spent it at casinos and to pay his bank card money owed.
Playing for over 20 years
Within the late 1990s, Robert Alexander was president of “Jack of All Video games”, a online game firm. He then made a reputation for himself within the tech world, by promoting the corporate to Take Two Interactive in 1998, netting himself $30 million.
Take Two Interactive owned the sport Grand Theft Auto that very same yr, and Alexander stayed on to assist distribute it, however quickly was fired for unknown causes in 1999.
It regarded like Alexander was overwhelmed with the hundreds of thousands of money he had from the sale of Jack of All Video games that he unwittingly splurged it by unwise spending and interesting in high-stakes gambling in Las Vegas casinos. Kinfolk say he would win massive and lose massive. There was a time he boasted about profitable $7.eight million on the Golden Nugget in 2004. However individuals would surprise how a lot did he lose precisely?
Bluffing Potential Traders
Courtroom paperwork additionally reveal that Alexander lied about serving to to create the highly-popular online game “Grand Theft Auto”. He additionally lied to buyers, telling them he had used up hundreds of thousands of his personal cash so as to create Kizzang. Additionally, he claimed he donated round $50 million to a hospital in Los Angeles.
Alexander was in a position to reel in 53 people who believed in him sufficient to put money into Kizzang, which reached to $9 million. A former worker of the corporate advised the New York Put up that one investor had requested to tug out of the corporate however was refused. The investor will need to have alerted the authorities, and shortly after the FBI started an investigation on the corporate.
One in all Alexander’s former staff acknowledged, “He had the gambler’s mentality. Robert prided himself on comebacks within the casino and thought he might handle one in his enterprise.”
In response to SEC, Kizzang by no means actually had any actual income, and Alexander was embezzling the funds for his private use.
Borrow and Run
One in all his disagreeable gambling habits was that Alexander would borrow from individuals he knew with out the intention of paying them again.
A kind of he borrowed cash from was poker professional Patrik Antonius, who revealed he loaned Alexander $700,000. It’s believed the Finnish professional might have given it to him throughout a high-stakes poker sport.
Miami-based actual property investor Eric Fessler additionally loaned Alexander $200,000 whereas taking part in a craps sport on the Wynn On line casino in 2007.
Each males mentioned they’re nonetheless ready for him to pay them again.
Those that know him personally declare he is simply one other Erick Lindgren, a poker professional who gained massive but additionally misplaced massive and would are inclined to borrow enormous quantities of cash considering they may positively land one other scorching streak or windfall of money that will immediately rescue him.
He was arrested on February 7, 2019.
Courtroom paperwork reveal that Alexander allegedly embezzled and spent:
- $404,000 to gamble at casinos
- $579,000 to pay for his private bank card payments
- $25,000 to pay for his daughter Elyse’s BMW
- $28,000 to pay for her tuition on the Culinary Institute of America