Jeb Tyler, Wire Fraud and Tax Evasion, New York 2018
Rochester, NY - Former 5LINX owner Jeb Tyler, 45, of Rochester, NY, pleaded guilty to conspiracy to commit wire fraud and filing a false tax return for the year 2014 before U.S. District Judge David G. Larimer.
The charges carry a maximum penalty of 20 years in prison and a fine of $250,000.
According to court documents, Tyler, along with Craig Jerabeck and Jason Guck, started 5LINX Enterprise, Inc. (5LINX) in 2001, a multi-level marketing company headquartered in Rochester, New York, which offered utility and telecommunications services, health insurance, nutritional supplements, and business services.
In June 2006 and July 2006, Tyler, Jerabeck and Guck sold 5LINX stock for $5,500,000 to three investment companies, Trillium Lakefront Partners III, L.P.; Trillium Lakefront Partners III, NY L.P.; and Shalam Investment Co., L.L.C. (collectively known as "the Investors").
Tyler admitted that between May 2010 and April 2016, 5LINX sold and distributed products for a Florida vendor. Tyler, along with Guck and Jerabeck, and without the knowledge of the Investors, Board of Directors, or other stockholders, conspired and agreed to cause the Florida vendor to pay them personally or companies they owned approximately $2,310,510, which their Stockholders Agreements prohibited them from receiving.
Tyler also admitted to providing material false information on his personal tax returns, Forms 1040, for the years 2012 through 2015. Specifically, the defendant admitted that he failed to report income he received from 5LINX, and took deductions to which he was not entitled, that is, consulting fees that were not paid.
The false returns resulted in a tax loss to the IRS of approximately $449,123.
Sentencing is scheduled for September 9, 2018, at 2:00 p.m. before Judge Larimer.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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