The Securities Exchange Commission has filed charges against Robert Alexander, the founder of Kizzang LLC, in connection with investment fraud. He had raised around $9 million from around 50 investors for the development and launch of an online gaming platform by misrepresenting a number of facts. He did the false representations and promises to attract investors. It is believed that he guaranteed a minimum return of 10 times their investment.
The SEC claims Alexander used investor funds totalling $1.3 million to finance his daily living, fund his daughters education, buy expensive cars, pay off personal debts and fund his gambling habit.
“As alleged in our complaint, Alexander promoted Kizzang as an opportunity for investors to profit from the early success of a technology start-up,” Carolyn Welshhans, Associate Director in the SEC’s Division of Enforcement, said. “In reality, Alexander brazenly converted investor proceeds for his personal use, sometimes within days of receiving investor funds.”
The SEC has charged Alexander and Kizzang with violating the anti-fraud provision of the Securities Act and Exchange Act, in the complaint filed with the U.S. District Court for the Southern District of New York.
Simultaneously, the U.S. Attorney’s Office for the Southern District of New York has laid criminal charges against Alexander.