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Posted on: Oct 4, 2021, 01:47h.
Final up-to-date on: October 4, 2021, 02:04h.
A Las Vegas on-line sweepstakes operator faces up to 40 a long time in jail for allegedly stealing far more than a million dollars from traders. But very first, he’s trying to take a person of his victims, a rich heiress, down with him.
Robert Alexander, 51, made $30 million by marketing his video video games promotion firm to Take-Two Interactive, the dad or mum company of Grand Theft Vehicle creator Rockstar Video games. But according to The New York Post, he blew his fortune in strip clubs and at craps tables.
His following undertaking was Kizzang, which supplied sweepstakes-based on the net gaming through slots tournaments, fantasy sporting activities, and scratch playing cards. In accordance to federal prosecutors, Alexander resumed his excessive way of life, but this time, the income was not his to squander.
Wall Road Royalty
Prosecutors say Alexander stole “at least” $1.3 million from investors in Kizzang and used it as is personal particular piggy financial institution. He spent additional than $450,000 at the gaming tables of Las Vegas. Yet another $579,000 went towards shelling out off his credit playing cards.
Just one of these traders was Sherry Pryor Witter, a Wall Road heavyweight who is married to Michael D.Witter. He’s the grandson of Dean Witter, who started out the legendary brokerage business Dean Witter Reynolds, which merged with Morgan Stanley in the 1990s.
Pryor Witter was the initial investor in Kizzang to odor a rat. She referred to as the FBI, but allegedly not before she offered her shares, which Alexander’s lawyer claims she understood have been worthless.
If the allegations of Sherry Pryor Witter from the defendants are to be substantiated then she is a fugitive from justice for the resale of the worthless paper she bought soon after her legal allegations from the defendants,” Alexander’s legal professionals claimed in courtroom papers filed in the US Southern District of New York and with the SEC.
Alexander has pleaded responsible in January 2020 to 1 count of securities fraud and 1 count of wire fraud, but has frequently and properly filed to have sentencing delayed, citing health explanations. It seems that he’s hoping to acquire leniency by throwing Pryor Witter underneath a bus.
Alexander also hoped he could monetize Kizzang’s consumer website traffic via advertising and sponsorship. But according to prosecutors, the venture “never had any meaningful resource of revenue” from its 2017 inception to its insolvency.
They allege he created wild promises to investors about tenfold returns, and mentioned he had designed a new hit video clip match. He told a single trader he had created a charitable donation of $50 million to a distinguished Los Angeles hospital to cultivate an image of particular prosperity.
In fact, he was virtually broke.