Texas CEO Defrauded $70 Million from Investors; Lands in Jail for 20 years for Wire Fraud
The former CEO of a North Texas tech company was sentenced to 20 years in prison. He was accused of defrauding investors in his company while living a lavish lifestyle.
Christopher Kirchner, 37, the founder of Slync, has been found guilty of multiple counts of wire fraud and engaging in monetary transactions in property derived from specified unlawful activity. In January, Kirchner was found guilty by a jury and subsequently sentenced by Fort Worth federal Judge Mark Pittman on July 11. He was given a 20-year prison sentence and ordered to pay $65 million in restitution.
Kirchner’s sentencing garnered attention not only in North Texas but also internationally, including coverage by the BBC in England. It is reported that Kirchner had made attempts to acquire two English soccer clubs in recent years, namely Preston North End and Derby County, as per reports from the BBC and The Athletic.
Both clubs participate in the English Football League Championship division, which is the second-highest league in English football, below the Premier League.
According to the BBC, Kirchner’s attempt to acquire Derby County collapsed in June 2022 due to the failure of the necessary funds to be cleared.
According to The Athletic, the Derby County failed bid happened shortly after Kirchner backed out of a deal to buy Preston North End. The publication also reported on Kirchner’s recent sentencing in federal court.
The court documents filed by federal prosecutors did not make any reference to Kirchner’s attempts to purchase the English clubs. However, they claimed that Kirchner “improperly used the [Slync] investor funds in different ways,” such as transferring money from Slync’s bank to an account that only he could access.
According to prosecutors, Kirchner used the wired money to purchase a variety of items, such as a private jet worth $16 million, a suite at AT&T Stadium worth $495,000, luxury cars like a Rolls Royce and Mercedes Benz G-Class, a Richard Mille Watch worth $500,000, and multiple Rolexes.
According to prosecutors, Slync was facing financial difficulties in the spring of 2022. During this time, Kirchner managed to persuade additional investors to transfer $850,000 to Slync, claiming it was a Series C investment.
Kirchner established Slync in 2017 and served as CEO until his dismissal by the Board of Directors in 2022. In February 2023, he faced charges following his arrest at his Westlake residence. The allegations claimed that he had misappropriated $20 million from the company.
Overall, Kirchner deceitfully obtained over $71 million from multiple investors in a span of two years, according to prosecutors.
This was done through misleading statements and false promises about Slync’s business operations, financials, customers, and exaggerated revenue projections. According to evidence presented at the sentencing hearing, he misappropriated over $25 million of those investor funds.
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