Some fraudsters are hidden from view, almost in the shadows of their companies. Others are in-your-face, almost daring to be caught. As a business ethics keynote speaker, business ethics consultant and book author, I have seen the extremes and all stops in-between.
However, in the world of fraud, I must award today’s arrogance-medal to CEO Chris Kirchner, founder of Slync, a hi-tech logistics company.
The Jet-setter CEO
Kirchner traveled the world in his own jet to play in golf tournaments. He was good enough to compete in multiple Pro-Am events and even arranged for his company to sponsor the Dubai Desert Classic in 2021. It was pretty heady stuff and he mixed with the likes of Rory McIlroy, Jordan Spieth, Brooks Koepka and Scottie Scheffle.
Kirchner had all the trappings of great wealth: country clubs, luxury cars, expensive tastes and all that, but he had a problem: it was all built on fraud.
Before he launched Slync, Kirchner sold TVs at Best Buy. His plan to launch the company was apparently good enough to attract significant investment and then top-notch employees. The problems associated with his excesses were realized all too soon. As he was golf-course hopping and burning through cash, Slync’s 100+ employees were not being paid – or paid late.
It started to raise serious issues, so much so that law enforcement was notified and several federal agencies got involved. In February 2023, Chris Kirchner was accused of counts of wire fraud in the misappropriation of more than $20 million of the company’s funds. The globetrotting golfer could be facing a jail sentence of 20-years.
A quote by U.S. Attorney Leigha Simonton summarizes it nicely:
“This defendant flaunted his apparent wealth while allegedly diverting millions from company coffers into his private bank account. Slync investors and employees are understandably outraged, and we sympathize. We look forward to holding Mr. Kirchner accountable in federal court.”
No checks and balances
As a business ethics keynote speaker, business ethics consultant and ethics book author, I have seen and heard the arrogant stories of many unethical executives “suddenly infused” with wealth. They go down an unprincipled road believing they are immune to ethical accountability. As CEO, it was his task to foster and guide his employees, and yet his arrogance, complete with company jet, drained the bank account to the point where those doing the work weren’t being paid.
Investors in the organization seemed to have moved too hastily, and empowered a CEO to carry on a business without proper accounting practices in place. As a result, the pool of revenues was his personal piggy-bank and no one challenged him.
Chris Kirchner had a need to feel powerful and whether he was driven by money or fame is not as important as the fact that his needs were pushed ahead of everything and everyone else. He took what he needed and worse, though his employees undoubtedly saw it, those who financially supported the venture weren’t listening. Books, like golf score cards, can be faked. Big promises of huge revenues are powerful commentaries at board meetings but unless the facts and figures behind the presentations are thoroughly examined the hype remains hype.
Kirchner might have rationalized his behaviors in any number of ways, from using the expenditures to support tournaments as promotion to the misconception that if he hobnobbed with the powerful the company would become powerful as well. It was all illusion.
Whether fraud on a golf course or in the boardroom of a pharma organization, the principles and outcomes ring true.
