Alex Beckman, the founder and former CEO of chatbot company On, and his wife Valerie Lau Beckman have been charged with wire fraud, conspiracy to commit wire fraud, and securities fraud. Federal prosecutors in San Francisco accused the couple of misusing over $4 million of investor funds to purchase a home, pay for private schools, buy luxury cars, and cover wedding expenses. Since its founding in 2014, On raised over $125 million from venture capital firms and celebrities, according to Pitchbook.
Prosecutors stated that “in most years, GameOn’s annual revenue was materially less than $500,000.”
In July 2024, Beckman was forced to resign as CEO after an elaborate deception was uncovered by the board. Venture Beat reported that while a company account should have contained $11 million, it only had $0.37. Prosecutors also revealed that in June 2024, Lau Beckman submitted a falsified financial statement to a bank, claiming the company had over $13 million when it had just $25.93.
Hans Swildens, the CEO and founder of Industry Ventures, confirmed that Lau Beckman left the company on December 31, after four months of maternity leave. The couple was arrested on Thursday and made their initial appearance in a San Francisco courtroom.
Fraud charges for San Francisco couple
“The Bay Area is home to incredible innovation and hard-working entrepreneurs, but innovation cannot grow through fraud,” Patrick D. Robbins, a federal prosecutor, said in a statement. “Schemes like the ones that defendants are charged with threaten our financial markets and cheat investors.”
The couple allegedly defrauded investors in ON Platform by faking bank records and impersonating business contacts.
In one instance, when an investor wanted to see a bank statement, Lau allegedly planted a fake statement showing a $13-million account balance and placed it at the bank so that when Beckman and the investor arrived, they would see the balance. The alleged scheme took place between September 2018 and July 2024. The couple allegedly spent more than $4 million of investor funds on personal expenses, including paying for private schools, their wedding venue, and homes in San Francisco.
Beckman also allegedly used the names of at least seven people without their permission in order to distribute fraudulent financial information. Representatives for Beckman and Lau did not immediately respond to a request for comment.
