Columnists often strain over their topics, but the story of convicted fraudster Robert Alexander and his dance with the justice system almost writes itself.
You may recall that one-time Las Vegas casino high roller Alexander was the central figure in a federal investigation of his Kizzang LLC online-gaming business, which collapsed in scandal after investigations by the US Securities and Exchange Commission and the FBI. The SEC found that Alexander had defrauded at least 50 investors, who put more than $9 million into the company with promises that they’d make at least 10 times back. Alexander had made millions selling a previous company to the creators of the Grand Theft Auto, then used his wealth and credibility to jump to the next big thing.
A criminal investigation found gambling sprees, luxury-car payments, and sending his daughter to culinary school. Authorities believed he stole at least $1.3 million in all. In January 2020, Alexander pled guilty to securities and wire fraud in a case brought by the U.S. Attorney’s Office in the Southern District of New York. Alexander was 49 back then and the convictions carried potential sentences of 20 years each.
At the time of his guilty plea, U.S. Attorney Geoffrey S. Berman announced, “Robert Alexander now faces serious time in prison for gaming his investors.”
Who knows, maybe Berman was speaking hypothetically.
No one reasonably expected Alexander to spend anywhere near that much time behind bars. But It’s safe to say most people, maybe even the prosecutors, thought he might actually be sentenced for his crimes.
That is precisely what has not happened in the ensuing four years. Thanks to some good lawyering and an extremely understanding U.S. District Judge Andrew L. Carter Jr., Alexander has won a series of sentencing delays due to failing health. Eyes, ears, nose, and throat: Apparently, the guy’s a mess and has doctors willing to swear that he’s too medically fragile to travel from his Las Vegas home to the halls of justice in Manhattan. So far, I count four delays.
Alexander’s luck continued outside the courtroom, too.
By any measure, a person with a high-profile criminal conviction and especially one who gambled investor funds shouldn’t be welcome in any casino. But even after Alexander’s fraud conviction, he was allowed to gamble at Resorts World Las Vegas. Who knows, maybe gambling made him feel better.
When Alexander got into a disagreement with “vigilante high-roller” Robert “Robin Hood 702” Cipriani, it was Cipriani who was charged with robbery and larceny. Cipriani in recent years has been shouting on social media about Strip casinos catering to players with criminal records; eventually, the charges against him were reduced to disorderly conduct.
And Alexander?
He’s still ducking and dodging and doctoring and trying to avoid a scheduled April 23 sentencing hearing.
On April 4, Alexander attorney Brian Jacobs again wrote a letter to Judge Carter, seeking a sentencing delay due to his client’s “serious medical condition.” Jacobs submitted two letters from Alexander’s physicians and asked that they be placed under seal.
“The information contained in the doctors’ letters regarding Mr. Alexander’s present condition demonstrates why at least a six-month adjournment is necessary in order for Mr. Alexander to potentially become well enough to be able to attend and participate in the hearing.”
Meanwhile, as Jacobs notes in his letter, prosecutors state, “We object to further adjournments, given the amount of time since the plea and the need of the victims for finality and to begin receiving restitution, as set forth in our previous letters.”
Obviously, no one has been racing to put away the white-collar fraudster with the insider Vegas connections. But I do have to wonder how that makes some of Kizzang’s investors feel. At least some included professional gamblers, people accustomed to taking risks such as poker room legend Al DeCarolis.
Do they want to see him pay for his crime, or at least pay them back what he owes them?
At the very least Alexander should be made to sit for a few hours in Manhattan traffic.
