Summary:
San Francisco couple indicted on 25 federal counts for fraud related to their AI startup.
Alleged to have raised $60 million while misappropriating $4 million for personal use.
Charges include wire fraud, securities fraud, identity theft, and conspiracy.
Alexander Beckman allegedly fabricated financial documents using real individuals' names.
Couple could face up to 20 years in prison for each fraud count.
A San Francisco couple, Alexander and Valerie Beckman, have been arrested following a 25-count federal indictment related to their AI company, GameOn Inc. The charges include wire fraud, securities fraud, conspiracy, and identity theft.
The Allegations
Alexander, the founder and former CEO of GameOn, allegedly raised $60 million from investors over six years. Prosecutors claim that $4 million was misappropriated for personal expenses, including luxury homes and private schooling.
Valerie, who served as an attorney for GameOn, is accused of providing her husband with genuine audit reports to create misleading documents that inflated the company's financial status. The indictment reveals that the couple allegedly fabricated financial statements and misrepresented customer relationships to deceive investors.
Details of the Fraud
The indictment states that Alexander used the names of real individuals to distribute fraudulent financial information. He allegedly created fake audit reports using the names and trademarks of reputable accounting firms and provided false bank statements for GameOn’s accounts. Valerie is accused of knowingly sending one of these fake reports to investors to solicit further funding.
If convicted, the Beckmans face severe penalties, including up to 20 years in federal prison for each count of fraud, with additional charges leading to even longer sentences. Valerie additionally faces charges for obstruction of justice.
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