The Securities and Exchange Commission charged the founder and former CEO of Slync, Inc., Christopher S. Kirchner, with fraud. The charges involve offering more than $67 million in securities to Slync investors. Kirchner then misappropriated over $28 million of that money for his own benefit.
The claims
Between January 2020 and January 2022, Kirchner lied about the privately held software company’s financial conditions, including:
- The amount of revenue the company earned
- The nature and volume of its contracts with existing and future customers
- The planned use of fundraising proceeds
According to SEC investigators, Kirchner transferred part of the $28 million into his personal bank accounts. He also used company accounts to pay lavish personal expenses, including a $16 million private jet. At the same time, Kirchner did not make timely payroll distributions to Slync employees on numerous 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.”
Civil and criminal charges
The complaint against Kirchner was filed in U.S. District Court for the Northern District of Texas, where Slync is based. The U.S. Attorney’s Office for the Northern District of Texas is also bringing criminal charges against Kirchner.
