SEC v. Christopher S. Kirchner, No. LR-26211, Northern District of Texas (Jan. 7, 2025) — Press Release
raw: Christopher S. Kirchner
Christopher S. Kirchner, No. 4:23-cv-00147 (Jan. 7, 2025)
summary
Christopher S. Kirchner, former CEO of Slync, Inc., obtained a final judgment for a $67 million securities fraud involving the misappropriation of $28 million for personal luxuries.
paragraph
Christopher S. Kirchner, the former CEO of Slync, Inc., was charged with misrepresenting company revenue and contract volumes to raise over $67 million in securities. He misappropriated more than $28 million of these funds to pay for personal investments, entertainment, and a $16 million private jet. The final judgment includes an officer-and-director bar and a disgorgement of approximately $35 million, which is satisfied by a parallel criminal restitution order.
narrative
The SEC obtained a final judgment against Christopher S. Kirchner, the former CEO of Slync, Inc., for orchestrating a $67 million securities fraud between 2020 and 2022. Kirchner misrepresented Slync's financial condition, including revenue and contract volumes, to attract investors. Of the funds raised, he misappropriated over $28 million for personal use, notably purchasing a $16 million private jet and funding personal investments. The final judgment imposes an officer-and-director bar and orders disgorgement of $28,074,080 plus $6,770,535 in interest. This financial obligation is deemed satisfied by a restitution order in a parallel criminal case. Due to his conviction and a twenty-year prison sentence in that criminal matter, no additional civil penalties were imposed.
Classified pre-ipo-fraud(confidence 100%). EDGAR detection: forms S-1/Form D/1-A· recall 72% / precision 8%. detection rule →
Statutes
15 U.S.C. § 77q(a)
Parties
Securities and Exchange CommissionChris KirchnerADR ProviderKfim LLC
Keywords
kirchnersecchristopher kirchnersecurities exchangeexchange commissionsecuritiesfinalmillionjanuaryslyncjanuary securitiesfinal againstparallel criminalchristopherexchange
Exhibits & Attached Documents (2)
Extracted insights
Dollar amounts 6
- $67.00M $67 Million $10M–$100M
- $67.00M $67 million $10M–$100M
- $28.07M $28,074,080 $10M–$100M
- $28.00M $28 million $10M–$100M
- $16.00M $16 million $10M–$100M
- $6.77M $6,770,535 $1M–$10M
Entities 4
- person christopher s. kirchner
- person final judgment
- agency Securities and Exchange Commission
- location United States
Triples 8
- Securities And Exchange Commission obtained final judgment against defendant Christopher S. Kirchner
- Christopher S. Kirchner misrepresented financial condition to investors including revenue amounts and contract details
- Christopher S. Kirchner misappropriated funds more than $28 million from Slync investors for personal use
- Christopher S. Kirchner used misappropriated funds to fund personal investments, pay entertainment expenses, and purchase a $16 million private jet
- Securities And Exchange Commission charged Christopher S. Kirchner for fraudulently offering and selling more than $67 million of securities
- Final Judgment orders disgorgement $28,074,080 representing ill-gotten gains plus $6,770,535.02 prejudgment interest
- United States obtained restitution order in United States v. Kirchner, Crim. No. 23-127-P (N.D. Tex.)
- Securities And Exchange Commission did not impose civil penalties due to Kirchner’s twenty-year criminal sentence
PDF (from attached: complaint)
Text layers
Extracted body text (2,439c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26211 / January 7, 2025 Securities and Exchange Commission v. Kirchner et al., No. 4:23-cv-00147 (N.D. Tex. filed Feb. 14, 2023) SEC Obtains Final Judgment Against Former CEO in $67 Million Offering Fraud On January 3, 2025, the Securities and Exchange Commission obtained a final judgment against defendant Christopher S. Kirchner, the co-founder and former CEO of Slync, Inc., a privately-held Texas-based software company, whom the SEC previously charged for fraudulently offering and selling more than $67 million of securities to multiple investors, more than $28 million of which he misappropriated for personal benefit. As alleged in the SEC’s complaint filed on February 14, 2023, in the United States District Court for the Northern District of Texas, between approximately January 2020 and January 2022, Kirchner misrepresented the financial condition of Slync to investors, including 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 that Slync raised from investors and used the money to, among other things, fund personal investments, pay entertainment expenses, and purchase a $16 million private jet. Kirchner consented to entry of the final judgment enjoining him from violating the antifraud provisions of the federal securities laws and imposing an officer-and-director bar. The final judgment orders disgorgement of $28,074,080, representing Kirchner’s ill-gotten gains as a result of the conduct alleged in the SEC’s complaint, together with prejudgment interest of $6,770,535.02, but it deems the obligation to pay these amounts satisfied by the entry of the order of restitution in United States v. Kirchner, Crim. No. 23-127-P (N.D. Tex.), the parallel criminal action based on the same conduct alleged in the SEC’s complaint. The final judgment does not impose civil penalties in light of Kirchner’s conviction and sentence of twenty years imprisonment in the parallel criminal case. The SEC’s litigation was handled by Todd Brody, Mary Kay Dunning, and Steven G. Rawlings and was supervised by Preethi Krishnamurthy and Sheldon L. Pollock, all of the New York Regional Office.
OCR text (2,439c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26211 / January 7, 2025 Securities and Exchange Commission v. Kirchner et al., No. 4:23-cv-00147 (N.D. Tex. filed Feb. 14, 2023) SEC Obtains Final Judgment Against Former CEO in $67 Million Offering Fraud On January 3, 2025, the Securities and Exchange Commission obtained a final judgment against defendant Christopher S. Kirchner, the co-founder and former CEO of Slync, Inc., a privately-held Texas-based software company, whom the SEC previously charged for fraudulently offering and selling more than $67 million of securities to multiple investors, more than $28 million of which he misappropriated for personal benefit. As alleged in the SEC’s complaint filed on February 14, 2023, in the United States District Court for the Northern District of Texas, between approximately January 2020 and January 2022, Kirchner misrepresented the financial condition of Slync to investors, including 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 that Slync raised from investors and used the money to, among other things, fund personal investments, pay entertainment expenses, and purchase a $16 million private jet. Kirchner consented to entry of the final judgment enjoining him from violating the antifraud provisions of the federal securities laws and imposing an officer-and-director bar. The final judgment orders disgorgement of $28,074,080, representing Kirchner’s ill-gotten gains as a result of the conduct alleged in the SEC’s complaint, together with prejudgment interest of $6,770,535.02, but it deems the obligation to pay these amounts satisfied by the entry of the order of restitution in United States v. Kirchner, Crim. No. 23-127-P (N.D. Tex.), the parallel criminal action based on the same conduct alleged in the SEC’s complaint. The final judgment does not impose civil penalties in light of Kirchner’s conviction and sentence of twenty years imprisonment in the parallel criminal case. The SEC’s litigation was handled by Todd Brody, Mary Kay Dunning, and Steven G. Rawlings and was supervised by Preethi Krishnamurthy and Sheldon L. Pollock, all of the New York Regional Office.