CUBE RegNews:
15^th February

SEC Charges Former CEO of Slync in $67 Million Offering Fraud and also sues Texan company for fraud.    

The Securities and Exchange Commission (SEC) has charged Christopher S. Kirchner, the co-founder and former CEO of Slync, Inc., a privately-held Texas-based software company, with fraudulently offering and selling more than $67 million of securities to multiple investors, more than $28 million of which he misappropriated for personal benefit. 

The complaint, filed in the United States District Court for the Northern District of Texas, charges Kirchner with violating the antifraud provisions of the federal securities laws and seeks permanent injunctive relief, disgorgement with prejudgment interest, civil penalties, and an officer and director bar against Kirchner. The SEC also seeks disgorgement with prejudgment interest from KFIM as a relief defendant. 

Elsewhere, an SEC complaint has been issued against two individuals, Clyde Cameron Cravey and Kenneth Wiedrich, through two Texan entities they controlled, Reliable One Resources, Inc. and Quantum Filtration, Inc., which were actively engaged in a fraudulent, unregistered offering that had raised approximately $34 million from over 500 investors.  

On January 9, 2023, the Court issued orders temporarily restraining the defendants’ ongoing offering, temporarily freezing the defendants’ assets, appointing a temporary receiver, and granting other emergency relief.