SEC Charges Former CEO of Slync in $67 Million Offering Fraud

Washington, D.C.--(Newsfile Corp. - February 14, 2023) - The Securities and Exchange Commission today charged Christopher S. Kirchner, the co-founder and former CEO of Slync, Inc., a privately-held Texas-based software company, with fraudulently offering and selling more than $67 million of securities to multiple investors, more than $28 million of which he misappropriated for personal benefit.

The SECs 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 Slyncs 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.

"We allege that Kirchner lied about Slyncs 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 Slyncs employees," said Sheldon L. Pollock, Associate Director of the SECs 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."

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.

In a parallel action, the U.S. Attorneys Office for the Northern District of Texas today announced the filing of related criminal charges against Kirchner.

The SECs investigation was conducted by Mary Kay Dunning, Lisa Knoop, Thomas Feretic, and Steven G. Rawlings of the New York Regional Office and Derek Kleinmann of the Fort Worth Regional Office, and it was supervised by Mr. Pollock. The litigation will be led by Jessica T. Quinn and Ms. Dunning of the New York Regional Office. The SEC appreciates the assistance of the Federal Bureau of Investigation Dallas Field Office.

You May Also Be Interested In

• Singularity Future Technology closes $5M registered direct offering
• reAlpha completes $8.5M InstaMortgage acquisition
• Gossamer Bio raises up to $250M in private placement for PAH drug