Kizzang fraudster Alexander beats his federal conviction the hard way, by dying

Monday, November 18, 2024 7:39 PM
Photo:  Shutterstock
  • Commercial Casinos
  • Igaming
  • John L. Smith, CDC Gaming

Robert Alexander, the diminutive online gaming platform developer whose promotion of the Kizzang social casino site generated millions in investments and resulted in two fraud convictions followed by multiple health-related sentencing delays, won’t spend a night in prison.

Alexander, 54, died October 18 at his Irvine, Calif., home, according to a court document related to his case in the United States District Court in the Southern District of New York. Rumors of Alexander’s death had been floating through the Las Vegas gambling community for weeks. 

The notice of the abatement, signed Nov. 8 by U.S. Attorney for the Southern District Damian Williams and Assistant U.S. Attorney Scott Hartman, means the charges against him are officially dismissed.

Alexander was charged March 6, 2019, after a federal investigation revealed he had used $1.3 million of the $9 million he received from investors in the sweepstakes-based online gaming platform for his personal lifestyle, schooling for his daughter, and a substantial gambling habit.

His flamboyant promotions were attention-grabbers and featured him in the company of NBA veterans, including Charles Oakley, and a lineup of Sports Illustrated models. It all played to the benefit of his image as a successful tech entrepreneur who had made his first fortune by selling his company to Take-Two Interactive, the parent company of “Grand Theft Auto,” for $30 million.

He gained a reputation as a high-rolling gambler in Las Vegas, where according to published reports he spent tens of thousands of dollars in nightclubs and once bragged about winning $7.8 million at the Golden Nugget. He also lost big, and a Securities and Exchange Commission investigation revealed he used at least $1.3 million of Kizzang investor funds to pay more than $400,000 in casino debts, another $579,000 for personal credit-card bills, and lavished his daughter with an expensive car and tuition at a culinary school. 

Following his guilty plea, Alexander was able to delay his sentencing multiple times, in part due to the COVID-19 pandemic. He also suffered from other health issues.

Alexander’s conviction didn’t prevent him from being a VIP guest at the 2021 opening of Resorts World Las Vegas, where he would later become entangled in an argument with fellow high-roller Robert Cipriani, a self-styled vigilante gambler who has taken to social media to point out the convicted felons and illegal bookmakers receiving high-roller privileges at Resorts World, MGM Grand, and other Strip resorts.