Chris Kirchner, former CEO of tech startup Slync, valued at more than $240 million after raising millions from investors like Goldman Sachs and then spending that money on a personal jet and luxury cars, was sentenced Thursday to 20 years. of prison. United States District Court for the Northern District of Texas.
The sentence, one of the harshest for a tech founder accused of fraud in recent years (Theranos’ Elizabeth Holmes was sentenced to 11 years in prison last year), caps a dramatic rise and fall for the young founder, who has raised more than $80 million for Slync. with the purpose of finding a primary software provider for the logistics industry. Kirchner, who represented through court-appointed counsel, won the maximum sentence and was ordered to pay $65 million in restitution, according to a sentencing document.
Kirchner was the subject of a July 2022 Forbes investigation that documented how she exaggerated board earnings figures and fired executives who tried to raise the alarm about her deception. In addition, he spent a lot of money on non-public expenses, buying his own plane. for 16 million dollars and a fleet of luxury cars. When the company’s investment ran out, Kirchner continued to travel around the world to attend dazzling sporting events, while his workers were not paid.
A few months later, Kirchner was arrested by FBI agents at his Dallas-area mansion and charged with fraud by the Justice Department and the Securities and Exchange Commission. The charges included the allegation that he fraudulently introduced and sold more than $67 million in securities, of which he embezzled more than $28 million for his personal benefit. The jury’s verdict in January found Kirchner guilty.
Slync, whose board toppled Kirchner following the Forbes report, ultimately closed its doors last year despite an additional $24 million investment by Goldman Sachs.
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