A pudgy Las Vegas excessive curler who’s dealing with a jail sentence on fraud fees has accused a complicated heiress to the Dean Witter fortune of ratting him out to the feds — however not earlier than, he claims, she dumped shares in his fizzled playing firm to unwitting traders.
Robert Alexander, a 51-year-old video-game promoter who blew by means of a $30 million windfall he’d reaped after promoting his firm to the makers of “Grand Theft Auto,” pleaded responsible final yr to swindling shareholders in one other firm he began known as Kizzang.
Alexander — who has a style for craps tables, strip golf equipment and palling round with former NBA stars, based on the feds — is dealing with as many as 40 years in jail on convictions for securities and wire fraud. According to court docket papers, he raised some $9 million beginning in 2013 to fund Kizzang and used a number of the proceeds as his private piggy financial institution.
That included siphoning off $400,000 to spend in casinos, the place he’d arrive by Maybach, and $579,000 to pay his bank card payments. By 2017, Kizzang — which had hawked digital sweepstakes, slot tournaments and contests — was “hopelessly insolvent,” Alexander instructed traders.
Among the traders who received bilked: Sherry Pryor Witter, a Wharton-educated monetary guru who has labored at posh Wall Street companies together with Lazard and billionaire Eddie Lampert’s hedge fund ESL Investments.
Now, Pryor Witter runs the Witter Family Office along with her husband Michael D. Witter, based on her Web web site.
The latter is the grandson of the legendary Dean Witter, who began the eponymous Wall Street brokerage in 1924.
Now, Alexander says he would have by no means been caught if not for Pryor Witter. In explosive court docket papers, Alexander claims Pryor Witter known as the FBI and blew the whistle on him when she realized she’d been scammed.
Alexander’s attorneys, nonetheless, went on to make an much more incendiary declare: Before Pryor Witter ratted out their shopper, they allege, she made certain to unload her shares in Kizzang, which they declare she knew have been nugatory. It was solely then — as soon as she’d ditched the junk shares — that she snitched to the FBI, they allege.
“If the allegations of Sherry Pryor Witter against the defendants are to be substantiated then she is a fugitive from justice for the resale of the worthless paper she sold after her criminal allegations against the defendants,” Alexander’s legal professionals alleged in court docket papers filed within the US Southern District of New York and with the US Securities and Exchange Commission.
Pryor Witter’s spokesman instructed The Post she was solely a sufferer of Alexander’s fraud. He declined to remark additional.
It’s not clear how Pryor Walter, 47, got here to be an investor in Kizzang. She’s listed as chief funding officer on the Web web site of the Witter Family workplace. It’s not clear how a lot cash the workplace manages. Her bio says she began her first hedge fund at 23, after graduating from the University of Pennsylvania. Her rich husband, who based on the household workplace’s Web web site focuses on philanthropic work, isn’t named within the go well with.
Court papers additionally don’t say when Pryor Witter invested in Kizzang, how a lot she invested or when or to whom she allegedly bought her shares.
Despite the very fact he has already confessed to his crimes, Alexander could also be trying to throw Pryor Witter beneath the bus in hopes to indicate he’s not the one dangerous actor within the scenario, a supply accustomed to the matter instructed The Post. The concept is to land a lighter sentence, the supply mentioned.
So far, Alexander has averted jail, the place he may face a most sentence of 20 years for one depend of securities fraud and one depend of wire fraud to which he pleaded responsible in January 2020. Since his plea, he’s been profitable in asking for delays to his sentencing — twice citing the coronavirus and as soon as saying he’s going blind and wishes surgical procedure on Oct. 11 to repair his eyes.
Real property investor Eric Presser, who misplaced $200,000 in Kizzang, instructed The Post that Alexander’s claims are normally far-fetched.
“It’s the same lies I’ve been hearing for 15 years,” mentioned Presser, who lent Alexander cash that was then rolled into Kizzang. “You can’t believe what he says. He’s not an honorable person.”
Alexander, who spent $44,809 of investor cash on excursions to amusement parks, spas and “adult entertainment venues,” based on court docket papers, hasn’t precisely been mendacity low since pleading responsible to the swindle. A advertising and marketing agency he began in July 2020, known as Peragos, is doing work for his pal and ex-Knick Charles Oakley, The Post has discovered. Among different initiatives, Oakley at the moment peddles a line of indoor grills. Oakley didn’t return e-mails from The Post.
The Post reached Alexander on his cellphone. He wouldn’t remark and directed The Post to his attorneys. His attorneys declined to remark.