An American businessman, Chris Kirchner, who unsuccessfully attempted to purchase Derby County Football Club, has been jailed for an unrelated fraud. Kirchner, 37, was sentenced to 20 years in a US federal prison on Thursday. A Texas court heard that the logistics entrepreneur spent millions of investors’ dollars on luxury items, including a private jet.
In June 2022, Kirchner scrapped his bid to buy the Rams out of administration after failing to secure the necessary funds. He founded the logistics software company Slync in 2017 and served as its chief executive until being dismissed by the board in 2022.
Kirchner was charged with fraud in February 2023 and was convicted in January 2024 on four counts of wire fraud and seven counts of engaging in monetary transactions with property derived from unlawful activity. US District Judge Mark Pittman sentenced him to 20 years in prison and ordered him to pay more than £50 million ($65 million) in restitution.
The court in Fort Worth, Texas, heard that between 2020 and 2022, Kirchner fraudulently raised more than £55 million ($71 million) from investors in Slync. He made numerous false representations and promises about the firm’s current business and future income. Kirchner then misappropriated over $25 million (£19 million) to purchase a $16 million (£12.35 million) private jet, Rolls-Royce and Mercedes supercars, luxury watches, and jewelry.
Between April 2020 and March 2022, Kirchner initiated nearly 100 transfers to move money from one of Slync’s bank accounts into another that only he could access. He also wired $20 million (£15 million) directly into his personal account.
US Attorney for the Northern District of Texas, Leigha Simonton, said, “Even as his company was circling the drain, Chris Kirchner was spending millions of his investors’ money on himself. Apparently, projecting personal prosperity was more important to him than making payroll.”
When Slync struggled to pay staff in spring 2022, Kirchner attempted to replace some of the money by convincing at least four investors to wire $850,000 (£655,000) as an added cash injection, without the board’s authorization. The court heard Kirchner provided various false explanations for Slync’s payroll issues and fired an employee who reported his financial misrepresentations to the directors.
After being suspended in late July 2022, Kirchner removed IT administrator privileges from key Slync employees, preventing them from accessing the company’s computer systems. An FBI inquiry revealed he then attempted to delete millions of pieces of Slync data, including emails.
Ms. Simonton added, “His duplicity earned him 20 years in prison. We are proud to hold him accountable for his crimes and are committed to pursuing all business people engaged in criminal conduct.”
