SEC: Online game developer gambled away investors’ money
LAS VEGAS (AP) — Federal regulators are accusing a Las Vegas online game developer of gambling away part of his investors’ money.
The Securities and Exchange Commission in a complaint filed Thursday accuses developer Robert Alexander of misspending part of the approximately $9 million he raised from investors for a purported online gambling business.
Regulators allege in the complaint that Alexander misappropriated at least $1.3 million from investments in Kizzang LLC, including $404,000 that he used in gambling sprees and $579,000 for personal credit card bills.
The U.S. Attorney’s Office for the Southern District of New York in a statement says it has filed securities and wire fraud charges against Alexander in a parallel action. The statement says the 49-year-old Las Vegas resident was arrested Thursday.
Federal court records do not list an attorney who could comment on Alexander’s behalf.