Failed Derby County bidder Chris Kirchner faces 180 years in prison if guilty of fraud
The man who was on the verge of buying Derby County out of administration last year has been formally charged with fraud and money laundering in the USA - and if found guilty, he faces up to 180 years in prison.
Chris Kirchner was the preferred bidder for the then-Championship club, but his takeover failed to complete at the last minute. The club was eventually bought by local businessman David Clowes.
The 35-year-old American, who founded a businesses in the US called Slync, has been indicted for allegedly defrauding investors out of at least $25million.
In the US, that means he's been given formal notice that it is believed that he committed a crime. It follows prosecutors presenting evidence to a 'grand jury', which has decided to continue with his prosecution. It remains only an allegation of wrongdoing, not evidence. Mr. Kirchner is presumed innocent until proven guilty in a court of law.
The charges brought against Chris Kirchner accuse him of committing five counts of wire fraud and eight counts of money laundering.
The US Attorney for the Northern District of Texas, Leigha Simonton, alleges Mr Kirchner swindled investors out of millions of dollars, which he used to fund a lavish lifestyle. And that he tried to cover his tracks by bringing in more investors, and firing employees who questioned him.
According to the indictment, Mr. Kirchner - who was Slync’s CEO from 2017 until 2022, when he was terminated by the Board of Directors due to allegations of misconduct – allegedly converted at least $25 million in investor money to his own personal use.
He's accused of misappropriating investor funds into his own accounts using some of it to buy a $16 million private jet and to secure a luxury suite at the stadium of professional sports team in Dalls, Texas.
Mr. Kirchner has offered various explanations for his company's payroll issues, claiming that the company’s cash was invested in illiquid assets that were difficult to divest. Later, he said that the U.S. government had frozen the company’s accounts because he had transacted in his personal capacity with sanctioned entities in Russia. Prosecutors claim neither explanation is true.
If convicted, Chris Kirchner faces up to 20 years in federal prison per count of wire fraud and up to 10 years in prison per count of money laundering.
The US Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Joshua D. Detzky, Blake J. Ellison, and John de la Garza are prosecuting the case.