The US Court of Appeals for the Fifth Circuit has upheld the conviction and 20-year sentence of logistics startup founder Christopher Kirchner, reported New York's FreightWaves.

The three-judge panel ruled unanimously, rejecting Kirchner's claims of improper testimony and misinterpretation of fund transfers. Kirchner, 38, is serving his sentence in federal prison with a release date set for 6 September 2040.

Judges said Kirchner diverted millions of investor funds to finance a lavish lifestyle rather than build his company. When funds ran out, he launched new financing rounds using fabricated documents and misrepresentations.

Kirchner was convicted of four counts of wire fraud and seven counts of money laundering. After his removal by the board in July 2022, Slync.io failed to recover from the scandal.

The court detailed how Kirchner raised US$7.2 million in early 2020, more than $50 million later that year and into 2021, and $850,000 in 2022 to cover payroll. He bypassed safeguards meant to restrict his access to company funds.

Diverted money was spent on wine, golf clubs, private jet charters, personal credit-card debts, a luxury suite at AT&T Field and eventually a private jet. Cracks in the scheme appeared in spring 2022 when payroll was missed and investors raised concerns.

The appellate court rejected all grounds for appeal, ruling that witness questioning was proper and transfers provided sufficient evidence for wire-fraud convictions. Activities were deemed part of a single fraudulent scheme.

Kirchner's forensic accountant testified the case was one of the most convoluted he had seen, with personal and business accounts commingled. Slync.io had marketed itself as a logistics visibility platform but collapsed under the weight of the fraud.