A prominent Silicon Valley couple has been arrested for allegedly swindling investors of over $60 million to fund their lavish lifestyle. Alexander Beckman, 41, founder and former CEO of the AI company GameOn, and his wife, attorney Valerie Lau Beckman, 38, are accused of orchestrating a “brazen and wide-ranging” six-year scheme.
The couple is facing several federal charges, including securities fraud, conspiracy, and identity theft. They allegedly used the stolen investor funds to purchase luxury properties, expensive vehicles, and private school tuition for Alexander’s children. Beckman rose to prominence in Silicon Valley after founding GameOn in 2014, creating AI chatbot services for clients including professional sports teams and fashion brands.
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Beckman was often seen mingling with high-profile figures, including Twitter co-founder Jack Dorsey, at elite events, all while allegedly embezzling millions from investors and covering it up with fake documents.
According to an indictment filed this week in San Francisco’s U.S. District Court, the fraud unraveled when GameOn’s board of directors found out that a company bank account expected to hold over $11 million contained just 37 cents.
To hide the misappropriated funds, Valerie allegedly deceived a representative from an investment firm at a San Francisco bank last June by presenting a forged balance sheet. However, she was caught on surveillance cameras in the act.
The unnamed investment firm had invested $5.7 million in GameOn in 2021 and met with Valerie at the bank to verify the AI company’s account balances at that time.
According to the indictment, Valerie met with an investment representative and presented a bank balance sheet showing $13.4 million, according to Mercury News. However, the actual amount in the account at that time was reportedly just $25.93.
Before the meeting, Valerie had allegedly visited the bank and emailed a fake statement to a bank employee, asking them to print it out, put it in an envelope, and have it ready for Alexander to collect later.
Prosecutors claim the deception succeeded initially, as the investment representative believed the statement was authentic and shared photos of it with other members of GameOn’s board, according to the indictment.
Multiple Cases of Fraud
The Beckmans are accused of using similar fraudulent tactics over several years, including creating fake financial documents and using fictitious identities. At one point, they even fabricated an entire board of directors to siphon millions into their personal accounts.
GameOn’s AI chatbot services were used by high-profile clients, including NFL teams like the Los Angeles Chargers and Las Vegas Raiders, MLB powerhouse New York Yankees, and Premier League contender Arsenal.
The company also attracted investments from notable celebrities, such as Snoop Dogg and Joe Montana.
The investment firm Valerie allegedly deceived at the bank was just one of four targeted by the Beckmans, with another located in San Francisco and two more in New York.
In one instance cited in the indictment, Valerie sent an email to one of the firms in April 2021, claiming GameOn had made $4 million in sales and $1.9 million in profits that month. Alexander is also accused of presenting investors with documents showing that GameOn generated $69 million in revenue and $54 million in profits in 2022.
Prosecutors claim these figures were entirely fabricated, as GameOn’s annual sales never exceeded $1 million.
Based on the false information, the investment firm reportedly provided an additional $2.5 million to GameOn just three days after receiving the misleading documents.
The following month, Valerie allegedly sent the same firm a spreadsheet claiming that GameOn held $9 million across two bank accounts. In reality, one account had just $2,350, while the other account showed a negative balance.
To execute the alleged swindle, Alexander reportedly created fake email accounts impersonating real employees, including the company’s chief financial officer, to mislead investors.
He is also accused of “forging two audit reports for GameOn,” which included the names, signatures, and trademarks of well-known accounting firms to lend credibility to the fabricated documents.
Prosecutors revealed that while millions flowed into GameOn from investors, the Beckmans were allegedly using the funds to support an extravagant lifestyle. This included private school tuition for Alexander’s children, a lavish wedding in 2023, expensive jewelry, and a Tesla Model X.
Property records obtained by The Real Deal show the couple also acquired two properties in Presidio Heights, one of San Francisco’s most exclusive neighborhoods.
The first purchase, a $1.5 million townhouse, was reportedly financed with a concealed $360,000 personal loan taken from GameOn.
Two years later, the Beckmans allegedly funneled $4.2 million directly into their personal accounts to buy a second property, despite “being fully aware the funds were derived from their scheme to defraud GameOn investors,” according to the indictment.
Alexander remained as CEO of GameOn until last summer when he was ousted after it was discovered that a company bank account, expected to hold millions, contained just 37 cents.
When he was thrown out, Beckman told VentureBeat at the time: “I understand that there are serious allegations being made, and I take them very seriously. Accordingly, I look forward to correcting the record and providing the full story at the appropriate time.”
Ten days after Beckman stepped down, GameOn revealed that its financial records from previous years had been falsified. The company subsequently rebranded as On Platform and laid off nearly all of its staff.
The Beckmans were arrested in San Francisco on Thursday and have pleaded not guilty to the charges. Alexander faces 23 criminal counts, while Valerie is charged with 16 counts.
Once regarded as a wealthy, high-profile couple, the indictment seeks to confiscate several luxury assets acquired through their alleged scheme. This includes their multi-million-dollar homes and the Tesla.
