The former CEO of a San Francisco AI firm and his wife are accused of a “brazen and wide-ranging” $60 million fraud scheme, in a 46-page 25-count unsealed today in federal court in San Francisco.

Alexander Beckman used his position as CEO of GameOn – now called simply On – to “defraud investors through a series of lies, half-truths and misleading statements and representations,” according to the indictment.

According to the indictment, Beckman, 41, and his wife Valerie Lau Beckman, 38, of San Francisco, allegedly conspired to defraud GameOn investors, GameOn and a bank.

The couple were arrested earlier today and made their initial appearances in federal court in San Francisco this morning.

The indictment didn’t identify any of the victims of Beckman's scheme, including banks and venture capitalists, or its biggest customers, including iconic professional sports leagues and teams.

In December, Beckman identified “partners that include prestigious luxury brands like Valentino and Armani, alongside major league sports teams such as the New York Yankees, Las Vegas Raiders, and Philadelphia 76ers, relying on On’s platform to deepen connections with their fan base.”

Big names in sports

On its website, On claims it is “working with” the NBA, NHL, NFL and FIFA, as well as sports teams, including the Detroit Pistons, Brooklyn Nets, Sacramento Kings, Charlotte Hornets, Atlanta Hawks, Philadelphia 76ers and Indiana Pacers in the NBA, and the New York Yankees, Kansas City Royals and Oakland A’s and other teams, as well as Allegiant Stadium, the Spectrum Center, Barclays Center and the Fiesta Bowl.

Prosecutors said that Beckman’s statements to GameOn investors “often described revenue that never existed, cash balances were vastly inflated and customer relationships that were not real and otherwise greatly exaggerated.”

The indictment said that one bank account listed GameOn's balance at an un-named bank as over $13 million when GameOn's actual account balance was just $25.93.

GameOn offered its customers a software program claiming artificial intelligence functionality that mimicked human conversation and interaction, commonly known as chatbot or simply "chat." GameOn's chatbot responded to natural language inquiries and other inputs, allowing its customers to use the chatbot as a tool to engage with their fans, customers and other members of the public.

Wire fraud and conspiracy

The crimes identified in the indictment included wire fraud, conspiracy to commit wire fraud, securities fraud, conspiracy to commit securities fraud and bank fraud, false statement to a bank, money transactions derived from unlawful activity, aggravated identity theft and obstruction of justice.

Beckman is the founder and former CEO of GameOn, Inc., also known as GameOn Technology or ON Platform, and his wife, Valerie Beckman, was an attorney who worked on GameOn matters.

GameOn, now On, is a San Francisco-based private business that offers a software program claiming artificial intelligence functionality that mimics human conversation and interaction, commonly known as a chatbot or “chat.”

Over the course of the alleged scheme, from September 2018 to July 2024, Beckman raised over $60 million from GameOn investors.

Last November, GameOn changed its name to On, then in December announced it had raised $25 million “as it transitions from sports to enterprise AI technology.”

“Bolstered by this fresh capital infusion, On aims to revolutionize the landscape of conversational AI by empowering businesses across various sectors to leverage generative AI for creating products,” the company proclaimed at the time.

On claimed at the time that it had raised $80 million from “notable participants including Equiam, B3 Capital, Commonwealth Financial Network and Mirae Asset Venture Investment.”

“With the rebranding as On, the company wants to capitalize on its leadership in AI chat, particularly in the sports sector, and expand its horizons into e-commerce, consumer banking, healthcare, and publishing domains,” the company said.

Big promises of a bright future

“On has been a trailblazer in innovation, turning conversational AI into a potent revenue-generating asset. As we embrace our new identity, we are thrilled to embark on a journey that will significantly amplify our influence within the generative AI space,” Beckman said in a statement. “Companies have poured substantial resources into AI research and development, often without a clear path to effective implementation and monetization. With the On platform, businesses spanning diverse industries can now confidently establish deeper and more impactful connections with their consumers.”

Its main venture capital investor, Mirae Asset Venture Investment, is headquartered in India and North Korea. In December, the venture capital firm was enthusiastic: “We are excited to continue to invest in and partner with On as its rebranding marks an exciting new chapter for the company, positioning it at the forefront of generative AI solutions for brands across various industries,” said Justin Kim, Mirae Asset. “With a fresh vision and a proven track record, On is poised to redefine how brands harness the power of AI.”

On reported in December that it had 100 employees

Valerie Beckman was an attorney who worked on GameOn corporate and transactional matters from at least 2016 to 2024.  The couple married in October 2023, used over $4 million of GameOn investor funds on personal expenses, including purchases of residences in San Francisco, payments to private schools, and payments to their wedding venue.

“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.  “This indictment should serve as a reminder that we will investigate and hold fraudsters accountable.”

“Fraud undermines the integrity of our capital markets and erodes the trust that investors place in them,” said FBI Acting Special Agent in Charge Dan Costin.  “The FBI is committed to ensuring our financial markets remain fair and transparent by investigating and holding accountable those who engage in deceptive practices.”

Non-existent revenue, inflated cash balances

As alleged in the indictment, Beckman’s statements to GameOn investors often described non-existent revenue, inflated cash balances, and fake and otherwise exaggerated customer relationships.  To further the scheme, Beckman allegedly used the names of at least seven real people—including fake emails and signatures—without their permission to distribute false and fraudulent GameOn financial and business information and documents with the intent to defraud GameOn and its investors.

Among the individuals whose names Beckman used to commit the fraud scheme was a GameOn CFO, two bank employees, and an employee of a major professional sports league, prosecutors said..  Beckman also is alleged to have fabricated two GameOn audit reports using the names, signatures, and trademarks of reputable accounting firms, including one of the Big Four accounting firms, to validate false financial statements, and distributed over a dozen fake bank statements for GameOn’s accounts as part of the scheme.

After changing law firms multiple times, prosecutors said Valerie Beckman joined a venture capital firm in September 2021.  She is alleged to have provided Beckman with genuine audit reports that she obtained from her own employer that Beckman then used to create fake audit reports for GameOn.

The indictment alleges that she personally emailed one of these fake audit reports to a GameOn investor’s representative, knowing it to be fake, to induce further investment into the company.

In August 2024, when Valerie Beckman’s employer approached her regarding GameOn, she is alleged to have lied to her employer about her work for GameOn and then attempted to delete hundreds of files relating to that GameOn work from her employer’s records at a time when a grand jury investigation into GameOn was pending.

If convicted, defendants face the following maximum sentences: 20 years in prison for each count of wire fraud and wire fraud conspiracy; five years in prison for the count of securities fraud conspiracy; 10 years in prison for the count of engaging in monetary transactions in property derived from specified unlawful activity; and two years in prison for each count of aggravated identity theft. Valerie Beckman also faces a maximum sentence of 20 years in prison for the count of obstruction of justice.