Fort Worth, Texas – Chris Kirchner, the founder of logistics technology startup Slync, has been convicted by a federal jury for defrauding investors out of a staggering $25 million. This case, brought to light by the U.S. Department of Justice, highlights a shocking misuse of investor funds and a breach of trust within the startup community.
Kirchner, who served as CEO of Slync from 2017 until his dismissal in August 2023, engaged in a series of fraudulent activities over a span of two years. Prosecutors detailed that between April 2020 and March 2022, Kirchner orchestrated nearly 100 wire transfers from Slync’s account at Silicon Valley Bank to another account at JPMorgan Chase Bank, which only he could access. This action alone raises serious questions about the oversight and governance within the company.
The manner in which the funds were used is particularly alarming. Prosecutors revealed that Kirchner spent a significant portion of the embezzled funds on a luxurious lifestyle. This included the purchase of a $16 million private jet, a luxury suite at a Dallas stadium, and an attempt to buy a soccer club. These extravagant expenditures came at a time when Slync was struggling to meet its payroll obligations, indicating a severe misalignment of priorities.
Kirchner’s deception extended beyond just financial mismanagement. To cover up the payroll issues at Slync, he offered various false explanations. Further exacerbating his fraudulent actions, Kirchner attempted to secure additional funds under false pretenses. He persuaded at least four investors to wire $850,000 to Slync for a supposed Series C investment round, which, as per court documents, was never authorized by Slync’s Board of Directors.
In a desperate attempt to hide his tracks, Kirchner tried to delete approximately 18 gigabytes of Slync data, including critical emails. This act of data destruction further solidifies the extent of his fraudulent behavior.
Following a four-day trial in a U.S. federal court in Fort Worth, Kirchner now faces severe legal repercussions. He could be sentenced to up to 20 years in federal prison for each count of wire fraud, in addition to up to 10 years for each of the other convictions.
