Posted on: October 5, 2021 Posted by: Robert Davis Comments: 0

Posted on: October 4, 2021, 01:47h. 

Very last updated on: October 4, 2021, 02:04h.

A Las Vegas on the internet sweepstakes operator faces up to 40 many years in jail for allegedly stealing additional than a million dollars from traders. But initially, he’s seeking to take one particular of his victims, a wealthy heiress, down with him.

Kizzang
Robert Alexander, remaining, poses with Knicks legend Charles Barkley at the launch of Kizzang, a business that had no “meaningful supply of revenue,” according to prosecutors. (Graphic: Getty)

Robert Alexander, 51, produced $30 million by selling his video games marketing business to Get-Two Interactive, the mother or father company of Grand Theft Automobile creator Rockstar Games. But according to The New York Post, he blew his fortune in strip clubs and at craps tables.

His future enterprise was Kizzang, which provided sweepstakes-dependent on the net gaming by means of slots tournaments, fantasy sporting activities, and scratch cards. According to federal prosecutors, Alexander resumed his abnormal life-style, but this time, the money wasn’t his to squander.

Wall Road Royalty

Prosecutors say Alexander stole “at least” $1.3 million from traders in Kizzang and employed it as is possess individual piggy lender. He invested more than $450,000 at the gaming tables of Las Vegas. A different $579,000 went towards having to pay off his credit playing cards.

A single of these buyers was Sherry Pryor Witter, a Wall Street heavyweight who is married to Michael D.Witter. He’s the grandson of Dean Witter, who begun the legendary brokerage organization Dean Witter Reynolds, which merged with Morgan Stanley in the 1990s.

Pryor Witter was the initially trader in Kizzang to smell a rat. She named the FBI, but allegedly not right before she offered her shares, which Alexander’s attorney statements she understood ended up 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 offered soon after her felony allegations in opposition to the defendants,” Alexander’s lawyers claimed in courtroom papers submitted in the US Southern District of New York and with the SEC.

Alexander has pleaded responsible in January 2020 to a single depend of securities fraud and one rely of wire fraud, but has repeatedly and correctly submitted to have sentencing delayed, citing health factors. It seems that he’s hoping to acquire leniency by throwing Pryor Witter under a bus.

Wild Statements

Alexander also hoped he could monetize Kizzang’s consumer traffic by way of advertising and sponsorship. But in accordance to prosecutors, the undertaking “never had any significant resource of revenue” from its 2017 inception to its insolvency.

They allege he built wild claims to traders about tenfold returns, and reported he had developed a new hit video sport. He instructed one trader he had built a charitable donation of $50 million to a popular Los Angeles hospital to cultivate an picture of personalized prosperity.

In actuality, he was practically broke.