A pudgy Las Vegas high roller who’s going through a jail sentence on fraud prices has accused a fancy 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 company to unwitting traders.
Robert Alexander, a 51-year-old video-game promoter who blew by way of a $30 million windfall he’d reaped after promoting his company to the makers of “Grand Theft Auto,” pleaded responsible final year to swindling shareholders in one other company he began referred to as Kizzang.
Alexander — who has a style for craps tables, strip golf equipment and palling round with former NBA stars, in accordance to the feds — is going through 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 some of the proceeds as his personal 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 bought bilked: Sherry Pryor Witter, a Wharton-educated monetary guru who has labored at posh Wall Street corporations together with Lazard and billionaire Eddie Lampert’s hedge fund ESL Investments.
Now, Pryor Witter runs the Witter Family Office together with her husband Michael D. Witter, in accordance to 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 referred to 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 attorneys alleged in court docket papers filed in 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 office. It’s not clear how a lot money the office manages. Her bio says she began her first hedge fund at 23, after graduating from the University of Pennsylvania. Her rich husband, who in accordance to the household office’s Web web site focuses on philanthropic work, isn’t named in the swimsuit.
Court papers additionally don’t say when Pryor Witter invested in Kizzang, how a lot she invested or when or to whom she allegedly offered her shares.
Despite the reality he has already confessed to his crimes, Alexander could also be trying to throw Pryor Witter underneath the bus in hopes to present he’s not the solely unhealthy actor in the scenario, a supply acquainted with the matter instructed The Post. The concept is to land a lighter sentence, the supply mentioned.
So far, Alexander has prevented jail, the place he may face a most sentence of 20 years for one rely of securities fraud and one rely 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 desires surgical procedure on Oct. 11 to repair his eyes.
Real property investor Eric Presser, who lost $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 money 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 money on excursions to amusement parks, spas and “adult entertainment venues,” in accordance to 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, referred to as Peragos, is doing work for his pal and ex-Knick Charles Oakley, The Post has discovered. Among different tasks, 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.