On February 7, 2019, the Securities and Exchange Commission (SEC) charged the owner of an online gaming company, Kizzang LLC, with fraudulently raising $9 million from 50 individuals.
The SEC alleged that Robert Alexander represented that investors would be returned 10 times capital invested and that Alexander had his own millions at stake in Kizzang, had made a $50 million charitable donation, and that he was the creator of a significant video game.
It was alleged by the SEC that Alexander, instead, converted $1.3 million to his own use. Gambling junkets consumed $450,000 of that, then Alexander blew investor funds to pay for his lifestyle and entertainment. The SEC complaint further alleged that Alexander paid for culinary school for his daughter and bought luxury cars with investor funds.
The SEC complaint stated that Alexander touted his “technology start-up.”
A spokesperson for the SEC said “In reality, Alexander brazenly converted investor proceeds for his personal use, sometimes within days of receiving investor funds.”
The U.S. Attorney’s Office for the Southern District of New York also advanced criminal charges against Alexander.
Anthony M. Abraham, Esq., PC, has represented many investors who have claimed against Broker-Dealers, Bankrupt and other estates for return of assets taken through fraud. Anthony M. Abraham, Esq., PC is experienced in broker fraud, churning and unauthorized trading claims. If you were victimized in this scheme and need help, please call us Toll Free at 1-877-430-4877 for a Free Consultation or email us at Anthony@Abrahamattorneys.com.