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X Strategies, a social media consulting firm with ties to President Donald Trump, sued its co-founder and former govt for embezzling and playing away tens of millions in firm funds, in accordance with a Sept. 18 grievance filed in a Florida court docket.
The Palm Seashore, Fl.-based enterprise alleges Derek Utley — who cofounded the companies in 2017 alongside Alexander Bruesewitz — “exploited his unique management” over the corporate’s financials in a interval starting in 2021 till 2026, to siphon and gamble with firm funds at casinos, the grievance filed Sept. 18 in the USA District Courtroom for the Southern District of Florida alleges.
“Utilizing the Firm’s cash, Utley received a complete of $26,000,000 enjoying slots at a single on line casino in a single 12 months (spending 200 days out of the 12 months in that on line casino),” the grievance alleges. “Utley, nevertheless, additionally misplaced $29,000,000 at this on line casino throughout the identical time interval, in the end resulting in a web lack of $3,000,000.”
X Strategies offers social media technique and political consulting services, in accordance with its web site. The business reportedly runs some of President Donald Trump’s social media accounts, in accordance with experiences by Politico.
Based on the grievance, Utley served each as the corporate’s chairman and as its CFO from its 2017 founding via his termination in early 2026, and owned 50% of the enterprise via Stark Protection Industries, a fellow defendant.
“I used to be by no means the CFO. I dispute these allegations,” Utley instructed CFO Dive in response to a request for touch upon LinkedIn. “I shall be responding by way of the authorized course of. I’ve no additional remark at the moment.”
Paul Punzone, a associate with Holland Knight LLP and lead lawyer for X Strategies, instructed CFO Dive that they had no touch upon Utley’s assertion that he was by no means finance chief of the corporate and that the grievance speaks for itself.
“We stand behind the allegations of the grievance,” Punzone stated.
X Strategies within the grievance describes a “brazen, complicated and multifaceted,” embezzlement scheme whereby Utley tapped firm funds to bankroll an “extravagant life-style.” As a part of the scheme, Utley bought luxurious sports activities automobiles, designer jewellery and first-class airfare journey, together with shopping for luxurious objects for his then-girlfriend and fellow defendant, Anna Weisheimer, the grievance alleges.
Weisheimer “has nothing to do” with the dispute between Utley and X Strategies, Utley instructed CFO Dive.
Utley’s embezzlement grew to become extra brazen alongside a rising playing dependancy, with Utley spending 200 days in 2025 alone playing on the Exhausting Rock On line casino in South Florida, in accordance with the go well with. When playing, Utley would preserve any winnings, however trigger “X Strategies to soak up the losses,” the grievance alleges.
An ongoing forensic audit of the enterprise’ funds exhibits Utley embezzled at the very least $5 million from X Strategies, the grievance states.
The previous govt obfuscated his scheme in a number of methods, together with by disguising private withdrawals from Stark Industries as reliable enterprise transactions. He additionally “flooded” X Strategies’ financial institution statements with a “excessive quantity of economic transactions on a near-daily foundation, transferring funds amongst completely different firm accounts and transferring cash into and out of these accounts, with a view to conceal the unauthorized withdrawals,” the grievance alleges.
The enterprise grew to become conscious of Utley’s scheme earlier in 2026 when Michael Siefert joined X Strategies as its president, in accordance with the go well with. Upon becoming a member of, Seifert instantly recognized monetary discrepancies, calculating that firm’s money readily available was “mathematically inconsistent” with its reported revenues and it ought to have had tens of millions extra in money readily available than it did.
After transferring to conduct an audit and getting access to the corporate’s monetary statements, Seifert confronted Utley in regards to the theft.
“Utley then in the end admitted to Seifert that he stole tens of millions of {dollars} from X Strategies,” the grievance famous. “Utley blamed the theft on his low shallowness, his want to have extra affect and impress others, and his playing and alcohol addictions.”
On April 3, Utley voluntarily stepped down from his roles on the firm and Stark Industries voluntarily relinquished its possession curiosity, however the firm briefly retained Utley as an worker on a brief foundation with duties for gross sales and consumer relations.
His employment was in the end terminated, however the firm alleges after his departure, Utley then engaged in a “calculated marketing campaign to sabotage X Strategies’ consumer relationships, steal prospects, divert funds from X Strategies, and disparage X Strategies to present and potential shoppers.”
Based on the grievance, Utley “at present identifies himself” because the President of Tower Technique, a former consumer and now competitor. An organization webpage currently lists Utley as a “associate” of Tower Technique, whereas his LinkedIn profile presently lists him as a personal investor and entrepreneur. Tower didn’t instantly reply to a request for affirmation of his function.
X is searching for compensatory and particular damages in an quantity to be decided however believed to be in extra of $5 million, disgorgement of all income and advantages obtaiend by Utley from his conduct, and punitive damages, amongst others, in accordance with the grievance.
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