Former Insider At Major Financial Services Organization Admits Involvement In Multimillion-Dollar Insider Trading Ring
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that ROBERT ALEXANDER pled guilty today to securities fraud and wire fraud in connection to his participation in a scheme to defraud investors by soliciting investments in his online gaming company (the “Company”) through false representations, and his misappropriation of investor funds for his own personal use. ALEXANDER pled guilty before United States District Judge Andrew L. Carter Jr.
U.S. Attorney Geoffrey S. Berman said: “Robert Alexander, president of an online gaming company, induced investors through false statements about the health of his company and his own background. Alexander betrayed his investors and spent their funds to support his lifestyle, including gambling excursions to multiple casinos, and a luxury car for one of his family members. Robert Alexander now faces serious time in prison for gaming his investors.”
According to the Indictment and statements made in open court:
Beginning in at least 2013 and continuing through in or about 2017, ALEXANDER engaged in a scheme to defraud investors in the Company. Specifically, ALEXANDER solicited and maintained investments in the Company through numerous false representations, including concerning his own professional background, the Company’s financial condition, expected returns on investment, and through false assurances to investors that their investments would be used solely for the Company’s business purposes.
Also in furtherance of his scheme and contrary to representations made to investors, ALEXANDER used more than approximately $1.3 million of the funds he obtained from investors on his own personal expenses instead of for the Company’s business purposes. For example, ALEXANDER used investor funds to make payments toward his personal credit cards, to fund his gambling excursions to multiple casinos, to make rental payments for his personal residence, and to make car payments for a luxury car purchased for one of ALEXANDER’s family members.
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ALEXANDER, 49, of Las Vegas, Nevada, pled guilty to one count of securities fraud and one count of wire fraud. The securities fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $5 million or twice the gross gain or loss from the offense. The wire fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the work of the Federal Bureau of Investigation. He also thanked the Securities and Exchange Commission for its cooperation and assistance in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Elisha J. Kobre and Margaret Graham are in charge of the prosecution.
Jim Margolin, Nicholas Biase