Founder of Lee County based company pleads guilty to security fraud
LEE COUNTY, AL (WTVM) - Founder of a Lee County-based company pleaded guilty to wire and security fraud.
On Aug. 22, 2018 Kyle Geoffrey Sandler, 42-year-old Auburn man, pleaded guilty to soliciting and accepting over $1.8 million from more than 50 investors in a scheme to defraud them.
According to court records from 2015 – 2016, Sandler founded and managed The Roundhouse LLC which is based in Lee County, Alabama.
Sandler advertised throughout Auburn and Opelika that the Roundhouse was a business that helped develop and startup companies by providing different services and management training.
Sandler made numerous misrepresentations and failed to share important information about his past
He lied and held himself as a successful entrepreneur and former employee of Google, which, according to Sandler, paid him millions of dollars for his work during the period that he worked for them.
Investors relied on this experience and expertise and turned over approximately $1.8 million in invested funds to be used to further the business of Roundhouse.
"Sandler led people to believe he was a legitimate businessman," stated U.S. Attorney Franklin. "He took advantage of a community that trusted him as a business leader. We hope that this prosecution sends a clear message that such conduct will not be tolerated."
Sandler was using the investors' money for personal expenses such as childcare services, rent, car purchases, and more.
Sandler also had prior felony convictions based on fraudulent conduct which he was required by law to disclose to potential investors.
Sandler will face a maximum sentence of 20 years in jail and a fine more than $5,000,000 on security fraud.
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