A former owner of the multi-level marketing company 5LINX Enterprise, Inc. (5LINX) has been sentenced to 14 months in prison for his role in a massive wire fraud scheme.
Jeb Tyler, 45, of Rochester, New York, was convicted of conspiracy to commit wire fraud and filing a false tax return for the year 2012.
The scheme, which lasted from 2001 to 2016, involved Tyler, along with Craig Jerabeck and Jason Guck, selling 5LINX stock to three investment companies for $5,500,000. However, without the knowledge of the investors, the board of directors, or other stockholders, the trio conspired to cause a Florida vendor to pay them approximately $2,310,510, which was prohibited by their Stockholders Agreements.
Between May 2010 and April 2016, 5LINX sold and distributed products for the Florida vendor, and Tyler, Jerabeck, and Guck received a total of $12,000,000 in fraudulent proceeds by representing themselves as fictitious representatives of 5Linx.
In addition, Tyler provided material false information on his personal tax returns, Forms 1040, for the years 2011 through 2013, and 2015, resulting in a tax loss of approximately $449,123.
U.S. District Court Judge David G. Larimer sentenced Tyler to 14 months in prison and ordered him to pay $2,759,633 in restitution. The judge also forfeited Tyler’s interest in real property at 4385 County Road 16 in Canandaigua, NY.
This case is the culmination of an investigation by Special Agents of the Federal Bureau of Investigations and the Internal Revenue Service, Criminal Investigation Division.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
