The Securities Exchange Commission has filed charges against Robert Alexander, the founder of Kizzang LLC, in connection with investment fraud.
The founder of Kizzang LLC, Robert Alexander was charged for investment fraud by the Securities Exchange Commission this week. The charges were filed after an investigation led the commission to review the accusations of Alexander raising close to $9 million from 50 different investors for the launch of an online gambling platform.
The commission said in the initial complaint, Alexander told investors that Kizzang was the perfect opportunity to profit with the early stages of the platform development. The Associate Director for the Commission’s Division of Enforcement said, “In reality, Alexander brazenly converted investor proceeds for his personal use, sometimes within days of receiving investor funds.”
Alexander allegedly misrepresented several facts of the development just to attract investors while guaranteeing at least a 10x return on their investments. The commission claims that a total of $1.3 million in investor funds was used to pay for his daily life including personal debts, paying for his children’s education, buying new cars and gambling. Alexander’s official charges are violating anti-fraud provisions of the Securities Act and Exchange Act. The commission filed its initial complaint with the US District Court in the Southern District of New York. The US Attorney’s Office in the Southern District filed criminal charges.