United States SEC Charges Former Co-Founder & CEO of Software Company Slync for Fraud, Sold $67 Million of Securities to Investors, Misappropriated $28 Million Including Spending $16 Million on Private Jet, Entertainment Expenses, Funding Personal Investment Company, Failure to Pay Employees on Time
15th February 2023 | Hong Kong
The United States Securities & Exchange Commission (SEC) has charged former co-founder & CEO of Software Company Slync (Christopher S. Kirchner) for fraud, selling $67 million of securities to investors, misappropriated $28 million including spending $16 million on a private jet, spending on entertainment expenses, funding personal investment company, and failure to pay employees on time. United States SEC: “The SEC’s complaint alleges that, between approximately January 2020 and January 2022, Kirchner misrepresented the financial condition of Slync to investors, including concerning the amount of revenue received from customers and the nature and volume of contracts with existing and potential customers, as well as the planned use of fundraising proceeds. In addition, between March 2020 and his termination from Slync in August 2022, Kirchner allegedly misappropriated more than $28 million of the funds Slync raised from investors, including by transferring tens of millions of dollars from Slync corporate bank accounts to his personal bank accounts and by paying for his personal expenses directly out of one of Slync’s bank accounts. As alleged in the complaint, Kirchner used the money to, among other things, fund his personal investment entity, KFIM LLC, pay entertainment expenses, and purchase a $16 million personal private jet, all while failing to make timely payroll distributions to Slync employees on several occasions.” Sheldon L. Pollock, Associate Director of the SEC’s New York Regional Office: “We allege that Kirchner lied about Slync’s business to secure tens of millions of dollars from investors, a massive portion of which he then stole from the company to live extravagantly while not paying Slync’s employees. The Enforcement Division remains laser-focused on uncovering and rooting out such brazen fraud and charging individuals who seek to induce investors to buy securities through lies and deception.” See full statement below.
“ United States SEC Charges Former Co-Founder & CEO of Software Company Slync for Fraud, Sold $67 Million of Securities to Investors, Misappropriated $28 Million Including Spending $16 Million on Private Jet, Entertainment Expenses, Funding Personal Investment Company, Failure to Pay Employees on Time “
United States SEC Statement
- SEC Charges Former CEO of Slync in $67 Million Offering Fraud
- Defendant Kirchner Misappropriated More Than $28 Million of Investor Proceeds to Fund His Lavish Lifestyle
14th Feb 2023 – The Securities and Exchange Commission today charged Christopher S. Kirchner, the co-founder and former CEO of Slync, Inc., a privately-held Texas-based software company, with fraudulently offering and selling more than $67 million of securities to multiple investors, more than $28 million of which he misappropriated for personal benefit.
The SEC’s complaint alleges that, between approximately January 2020 and January 2022, Kirchner misrepresented the financial condition of Slync to investors, including concerning the amount of revenue received from customers and the nature and volume of contracts with existing and potential customers, as well as the planned use of fundraising proceeds. In addition, between March 2020 and his termination from Slync in August 2022, Kirchner allegedly misappropriated more than $28 million of the funds Slync raised from investors, including by transferring tens of millions of dollars from Slync corporate bank accounts to his personal bank accounts and by paying for his personal expenses directly out of one of Slync’s bank accounts. As alleged in the complaint, Kirchner used the money to, among other things, fund his personal investment entity, KFIM LLC, pay entertainment expenses, and purchase a $16 million personal private jet, all while failing to make timely payroll distributions to Slync employees on several occasions.
“We allege that Kirchner lied about Slync’s business to secure tens of millions of dollars from investors, a massive portion of which he then stole from the company to live extravagantly while not paying Slync’s employees,” said Sheldon L. Pollock, Associate Director of the SEC’s New York Regional Office. “The Enforcement Division remains laser-focused on uncovering and rooting out such brazen fraud and charging individuals who seek to induce investors to buy securities through lies and deception.”
The complaint, filed in the United States District Court for the Northern District of Texas, charges Kirchner with violating the antifraud provisions of the federal securities laws and seeks permanent injunctive relief, disgorgement with prejudgment interest, civil penalties, and an officer and director bar against Kirchner. The SEC also seeks disgorgement with prejudgment interest from KFIM as a relief defendant.
In a parallel action, the U.S. Attorney’s Office for the Northern District of Texas today announced the filing of related criminal charges against Kirchner.
The SEC’s investigation was conducted by Mary Kay Dunning, Lisa Knoop, Thomas Feretic, and Steven G. Rawlings of the New York Regional Office and Derek Kleinmann of the Fort Worth Regional Office, and it was supervised by Mr. Pollock. The litigation will be led by Jessica T. Quinn and Ms. Dunning of the New York Regional Office. The SEC appreciates the assistance of the Federal Bureau of Investigation – Dallas Field Office.
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