Jan 23 (Reuters) - According to federal prosecutors on Thursday, Alexander Beckman, the founder and former chief executive of GameOn, a San Francisco-based AI startup, has been indicted for orchestrating a major fraud scheme that resulted in losses exceeding $60 million for the company and its investors.
Beckman, 41, faces 23 criminal charges, while his wife Valerie Lau Beckman, 38, a lawyer involved in GameOn matters, was also indicted on 16 counts. The charges include fraud, securities fraud, conspiracy, identity theft, and obstruction of justice. Both individuals were arrested and pleaded not guilty the same day, following their marriage in October 2023.
The U.S. Securities and Exchange Commission also filed civil charges against the couple. The allegations highlighted how Beckman allegedly deceived investors with false revenue figures, inflated financial accounts, and fictitious customer relationships, supported by fabricated documents and impersonation.
Moreover, Lau Beckman, who worked at a venture capital fund, reportedly aided Beckman by providing authentic audit reports to craft fake ones. She also attempted to erase GameOn-related files from her employer's records during a grand jury investigation.
Prosecutors revealed that the couple misused $4.2 million of investor funds on personal expenses including a residence, luxury vehicles, private school fees, and their wedding venue. Beckman resigned as CEO on July 1, 2024, coinciding with GameOn announcing false financial statements, resulting in a massive layoff of employees ten days later.
First Assistant U.S. Attorney Patrick Robbins emphasized, "The Bay Area fosters remarkable innovation and diligent entrepreneurs, but progress cannot be achieved through deceit." GameOn, now operating as On Platform, was not implicated in the case and has yet to comment on the matter.