Can't beleive what i just read- GameOn's $80Mn fraud

[source- https://x.com/eringriffith/status/1882530698244042760]

A startup called ON Platform, once known as GameOn, raised $80m in funding from investors including celebs like Snoop Dogg and Joe Montana.

Today its founder, Alexander Beckman, and his wife, Valerie Lau, were arrested for fraud.

GameOn was founded in 2014 and based in SF. It provided an AI chatbot for pro sports teams and luxury brands.

Beckman's alleged lies start with his background: He told investors his past company sold for just under 100m when it actually sold for less than $2m.

Per the indictment, he also: -described non-existent revenue -inflated cash balances -made up customers -used the names of 7 real people (with fake email addresses and signatures) to share this false info with investors.

His wife, a lawyer, was also allegedly in on it, fabricating bank accounts and audit statements, including one that showed a $13m cash balance when the real balance was $25.93(!!!!!!!).

They are accused of using company/investor money for: -a $4.2m home in SF -private school for Beckman's kids -their wedding venue -jewelry stores -luxury vehicles -100k in personal property taxes

They tried to take out a loan to pay back the money and used fake board meeting minutes to support the loan application.

Craziest detail, IMO: Beckman allegedly claimed GameOn had $69m in revenue in 2022 and $54m in profit.

Annual revenue NEVER EXCEEDED $1m since the company started.