San Francisco Couple Accused of Massive Fraud Scheme

A San Francisco tech entrepreneur and his attorney wife face shocking fraud charges that could land them in prison for decades.

Key Takeaways

Alex Beckman and Valerie Lau have been charged with defrauding investors of over $60 million.
The couple allegedly used $4 million of investor funds for personal luxuries.
The 25-count indictment includes charges of conspiracy, wire fraud, and securities fraud.
Beckman is accused of fabricating financial documents and impersonating business contacts.
If convicted, they face up to 30 years in prison for bank fraud conspiracy.

Tech Power Couple’s Fall from Grace

In a stunning turn of events, San Francisco tech entrepreneur Alex Beckman and his wife, attorney Valerie Lau, have been arrested and charged with orchestrating a massive $60 million fraud scheme. The couple, once seen as rising stars in the Bay Area’s tech scene, now face a 25-count indictment that includes charges of conspiracy, wire fraud, securities fraud, and identity theft.

Beckman, the founder and former CEO of GameOn (later rebranded as ON Platform), an artificial intelligence company developing software for retail brands and professional sports leagues, allegedly spearheaded the fraudulent activities. His wife, Lau, who served as the company’s attorney from at least 2016 to 2024, is accused of being complicit in the scheme.

San Francisco tech founder and wife arrested for allegedly defrauding investors out of millions https://t.co/zpj9LfMtAI

— Yahoo News (@YahooNews) January 28, 2025

The Alleged Fraud Scheme

According to the indictment, Beckman and Lau engaged in a complex web of deception to mislead investors and secure millions in funding. The fraudulent activities reportedly occurred between September 2018 and July 2024, during which time the couple allegedly fabricated financial documents, including audit reports and bank statements.

“The Bay Area is home to incredible innovation and hard-working entrepreneurs, but innovation cannot grow through fraud. Schemes like the ones that defendants are charged with threaten our financial markets and cheat investors” said First Assistant United States Attorney Patrick D. Robbins.

In one particularly brazen instance, Lau allegedly created a fake bank statement showing a $13-million balance when the actual balance was a mere $25.93. Beckman is also accused of impersonating at least seven individuals without their permission to distribute fraudulent financial information to investors.

Personal Gain at Investors’ Expense

The indictment alleges that Beckman and Lau didn’t just mislead investors; they also used over $4 million of investor funds for personal expenses. This misappropriation of funds reportedly included payments for private schools, a wedding venue, and homes in San Francisco. The couple’s lavish lifestyle, apparently funded by their investors’ money, stands in stark contrast to the financial struggles of their company.

The case serves as a sobering reminder of the potential for fraud within the tech industry, even among seemingly successful and well-connected entrepreneurs. It underscores the need for increased vigilance and due diligence on the part of investors, as well as robust regulatory oversight to protect the integrity of financial markets.

Legal Consequences and Ongoing Investigation

Both Beckman and Lau have been arrested and made initial court appearances in San Francisco. If convicted, they face significant prison sentences for various charges, including up to 30 years for bank fraud conspiracy. The case is being prosecuted by Assistant U.S. Attorney Patrick O’Brien and investigated by the FBI.

As the legal proceedings unfold, the tech community and investors alike will be watching closely. The outcome of this case could have far-reaching implications for how startups are funded and scrutinized in the future. The U.S. Attorney’s Office has emphasized its commitment to holding fraudsters accountable and protecting the integrity of financial markets.

This case serves as a stark reminder of the importance of transparency and ethical conduct in the business world, particularly in the fast-paced and often opaque realm of tech startups. As the investigation continues, it’s likely that more details will emerge about the extent of the alleged fraud and its impact on investors and employees of ON Platform.