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GameOn Technology Founders Arrested for $60 Million Fraud
Authorities have apprehended Alexander Charles Beckman, the founder of GameOn Technology, and his wife, attorney Valerie Lau Beckman, following allegations that they defrauded investors out of $60 million. The arrests occurred yesterday, amidst serious accusations detailed in a 25-count indictment from the U.S. Department of Justice.
The indictment outlines that the Beckmans are accused of fabricating numerous bank statements and audit reports over a six-year period to deceive GameOn investors. Beckman, who served as the company’s founder and former CEO, resigned last year amid reports suggesting that $11 million had inexplicably vanished from the firm’s financial accounts, leaving only a meager 37 cents. GameOn subsequently shut down and laid off employees in July 2024.
Beckman, aged 41, and Lau, aged 38, both from San Francisco, allegedly conspired to deceive not only investors but also GameOn and a bank. GameOn, previously based in San Francisco, provided a software platform that boasted artificial intelligence capabilities for chatbot services, targeting both major sports leagues and luxury retail brands as clients.
From September 2018 until July 2024, it is claimed that Beckman raised over $60 million from investors, while Lau served as an attorney overseeing corporate and transactional matters for GameOn from at least 2016 until 2024. The couple, who married in October 2023, reportedly misappropriated over $4 million of invested funds for personal expenditures, which included buying homes in San Francisco and financing their wedding.
In statements regarding the indictment, U.S. Attorney Patrick D. Robbins emphasized the need for integrity in financial markets, warning that fraudulent schemes could severely damage investor trust. Similarly, FBI Acting Special Agent in Charge Dan Costin reiterated the agency’s commitment to maintaining fair financial practices and the importance of accountability for those involved in deception.
The indictment claims that Beckman misled investors by fabricating revenue figures, inflating cash assets, and overstating customer interactions. To execute the alleged fraud, he is said to have used the identities of at least seven individuals—including a GameOn CFO, two employees of a bank, and an employee of a major sports league—without consent to distribute falsified financial documents.
Furthermore, Beckman is accused of creating and distributing two counterfeit audit reports, utilizing names, signatures, and trademarks from established accounting firms, including one from the Big Four. He is alleged to have issued more than a dozen falsified bank statements to perpetuate the scheme.
Lau’s involvement reportedly included providing authentic audit reports from her employer for Beckman to manipulate into fraudulent documents. The indictment asserts she knowingly emailed one of the forged reports to a GameOn investor to encourage additional investment into the company.
In another alleged instance of fraud, Lau is accused of delivering a fictitious GameOn account statement to a bank branch, falsely indicating an account balance of over $13 million, when the reality was a mere $25.93. She allegedly conspired with Beckman to retrieve this false statement under the pretense of being a legitimate financial document.
Following the arrests, both Beckman and Lau appeared in federal court in San Francisco, where they entered not guilty pleas. Under current U.S. law, if convicted, they face significant prison time for various charges, including up to 20 years for each count of wire fraud and conspiracy, along with other associated offenses.
GameOn Technology rebranded as On in December 2023, but the fallout from this scandal continues to loom large over the company’s legacy. The prosecution, led by Assistant U.S. Attorney Patrick O’Brien, is supported by an FBI investigation which revealed a tangled web of deception crafted by the company’s leadership.
In a letter from other company officers dated July 2024, it was revealed that they were left in shock upon discovering the company’s bank account, which should have held millions, was nearly empty. The letter outlined the urgent actions taken by the board, which ultimately led to Beckman’s resignation.
In prior interviews, Beckman maintained that he prioritized the best interests of the company and its staff by stepping down, insisting that he was aware of some miscommunication regarding his exit but also expressed a desire to clarify his side of the story in the future.
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venturebeat.com