The court case that began more than four years ago has marred Robert Alexander’s formerly extravagant lifestyle and the online gaming empire he helped establish
Robert Alexander a big name in Las Vegas and creator of the online gaming firm Kizzang, will get his sentence on January 14, 2024. He admitted to swindling investors out of more than $1.3 million.
Alexander’s Fraud Case Shines a Light on Industry Risks
The court case, which kicked off over four years ago, has tarnished Alexander’s once-flashy lifestyle and the online gaming world he helped build. His situation highlights the dangers of money wrongdoing in the booming gaming business.
Alexander set up Kizzang in 2013, a company based in Nevada that offers free online games and contests. While the company seemed appealing to the public, Alexander was using investor money for his own pleasures. Court documents show that Alexander spent about $280,000 of the stolen cash in casinos, and around $580,000 went to pay for fancy rent, reported the Las Vegas Review-Journal.
He lived a lavish life with the money he took, which included many gambling trips and buying expensive things. This behavior broke the faith his investors had put in him.
In January 2020, Alexander pleaded guilty to several fraud charges, including securities and wire fraud. These accusations came from his ongoing plot to trick investors. He made them think their money would grow Kizzang’s gaming business. Instead, he spent it for his own benefit causing big money losses for investors. Federal guidelines suggest Alexander might go to jail for up to 27 months. However, his sentencing keeps getting pushed back because he says he has health problems.
The Alexander Scandal Causes Ripple Effects on Online Gaming Regulation
Kizzang stopped working in 2017, two years before prosecutors charged Alexander in 2019. His downfall got more attention in 2021 when he clashed with pro gambler Robert “RJ” Cipriani at Resorts World Las Vegas. Police arrested Cipriani because of this fight, but in 2022 a judge threw out the theft and robbery charges against him. This run-in made people look closer at Alexander’s shady doings in Las Vegas casinos.
The impact of Alexander’s scams goes beyond his own case affecting the whole online gaming world. His actions have made people call for tighter rules and more checks on these companies. Investors and watchdogs want things to be clearer to stop more fraud in the future. Many think that Alexander’s punishment will make a point about holding bosses responsible and help investors trust the industry again.
