(HedgeCo.Net) Defendant Kirchner allegedly misappropriated more than $28 Million of Investor Proceeds to Fund His Lavish Lifestyle.<\/p>\n\n\n\n
The Securities and Exchange Commission has charged Christopher S. Kirchner,<\/strong> the co-founder and former CEO of Slync, Inc.<\/strong>, a privately-held Texas-based software company, with fraudulently offering and selling more than $67 million<\/strong> of securities to multiple investors, more than $28 million of which he misappropriated for personal benefit.<\/p>\n\n\n\n The SEC\u2019s 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\u2019s 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.<\/p>\n\n\n\n “We allege that Kirchner lied about Slync\u2019s 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\u2019s employees,” said Sheldon L. Pollock, Associate Director of the SEC\u2019s 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.”<\/p>\n\n\n\n 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.<\/p>\n\n\n\n In a parallel action, the U.S. Attorney\u2019s Office for the Northern District of Texas today announced the filing of related criminal charges against Kirchner.<\/p>\n","protected":false},"excerpt":{"rendered":" (HedgeCo.Net) Defendant Kirchner allegedly misappropriated more than $28 Million of Investor Proceeds to Fund His Lavish Lifestyle. The Securities and Exchange Commission has charged Christopher S. Kirchner, the co-founder and former CEO of Slync, Inc., a privately-held Texas-based software company, […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048,16047],"tags":[],"class_list":["post-83907","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news","category-insider-trading-2"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/83907","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=83907"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/83907\/revisions"}],"predecessor-version":[{"id":83908,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/83907\/revisions\/83908"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=83907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=83907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=83907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}