The founder and former CEO of AI chatbot company On, Alex Beckman, and his wife Valerie Lau Beckman, have been charged with wire fraud, conspiracy to commit wire fraud, and securities fraud. Authorities allege that Beckman used over $4 million of investor funds for personal expenses, including a home purchase, private school tuition, luxury cars, and his wedding venue. Prosecutors say Beckman vastly overstated the company's revenue and financials.
The former CEO of chatbot company On, which raised $125 million from VCs and sports stars like Joe Montana and André Iguodala, is now being charged with wire fraud, along with his wife.that the founder of a venture-backed AI chat startup allegedly used over $4 million of investor funds to purchase a home, fund private schools, buy luxury cars, and even pay for his wedding venue.
Alex Beckman, the founder and former CEO, and his wife Valerie Lau Beckman, were charged with wire fraud, conspiracy to commit wire fraud, securities fraud, among other charges. Lau Beckman is an attorney that worked as general counsel for Industry Ventures, a startup fund, and worked closely with On, which was formerly known as GameOn Technology.
Since Beckman founded it in 2014, On raised over $125 million in investment from venture capital firms B3 Capital and Quest Venture Partners, along with numerous celebrities, including the retired NFL legend Joe Montana, and the retired NBA star André Iguodala, according to Pitchbook. Prosecutors said that “in most years, GameOn’s annual revenue was materially less than $500,000.”
Beckman, Lau Beckman and On, as well as On’s investors, did not immediately respond to comment requests.In July 2024, Beckman resigned as CEO after being pushed out by the board, which had discovered an elaborate deception, Venture Beat reported.Prosecutors also say that in June 2024, Lau delivered a falsified financial statement to a bank that purported to show that the company had over $13 million in its account, when in fact, it had just $25.93.
Hans Swildens, the CEO and founder of Industry Ventures confirmed that Lau Beckman left the company on December 31, after four months of maternity leave. Swildens declined to comment further.“The Bay Area is home to incredible innovation and hard-working entrepreneurs, but innovation cannot grow through fraud,” Patrick D. Robbins, a federal prosecutor, said in a statement. “Schemes like the ones that defendants are charged with threaten our financial markets and cheat investors.
WIRE FRAUD SECURIITIES FRAUD AI VENTURE CAPITAL TECH STARTUPS
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