WESTLAKE, Texas — The founder of Slync, a supply-chain management software startup, has been indicted on federal wire fraud charges in a Fort Worth court, according to court documents.
Christopher Kirchner, 35, was arrested in February on allegations that he misappropriated $20 million from the company, federal officials announced at the time.
On Tuesday, a 25-page indictment was filed against Kirchner, alleging charges of wire fraud and engaging in monetary transactions in property derived from specific unlawful activity.
Kirchner faces 13 counts in the case; five on wire fraud and eight on the engaging in monetary transactions charges.
U.S. Department of Justice officials in February said Kirchner, 35, was charged via criminal complaint with wire fraud and arrested at his home in Westlake.
“This defendant flaunted his apparent wealth while allegedly diverting millions from company coffers into his private bank account,” U.S. Attorney Leigha Simonton said. “Slync investors and employees are understandably outraged, and we sympathize. We look forward to holding Mr. Kirchner accountable in federal court.”
“As the criminal complaint alleges, Mr. Kirchner used his position as a CEO to defraud investors and the company he worked for by diverting funds for his personal benefit. He did this to fund a lavish lifestyle at the expense of those that trusted him to act responsibly and ethically,” FBI Dallas Acting Special Agent in Charge James J. Dwyer said. “The FBI will remain persistent in our efforts to hold individuals accountable that commit such brazen acts of corporate greed.”
According to the complaint, Kirchner – who served as Slync’s CEO from 2017 until 2022, when he was suspended by the Board of Directors due to allegations of misconduct – allegedly wired $20 million from Slync’s bank account to his personal checking account.
In text messages, Kirchner told an employee that he was transferring money received from an investor into “an investment account” and a “chase” account, the DOJ said in a release. He then instructed the employee to approve the wires.
But Kirchner did not transfer money into an “investment account” or a “chase” account. He instead transferred $20 million of Slync funds into his personal account, according to the DOJ.
Meanwhile, in emails, Kirchner told private bankers that the $20 million represented “a distribution from my company.” Slync’s Board of Directors never authorized such a distribution.
Kirchner allegedly used the $20 million – which amounted to roughly 40% of $50 million raised from private equity investors and venture capital groups during the company’s Series B investment round – to fund a lavish lifestyle, including a $16 million private Gulfstream jet and a $495,000 luxury suite at a local sports stadium.
