A Syracuse man admitted to masterminding a "Facebook for business" scheme that bilked investors out of millions. Glen Zinszer, 51, of Liverpool, New York, pleaded guilty to committing wire fraud and willfully filing false tax returns in federal court in Syracuse.
Zinszer, who founded the Brazzlebox company in 2012, made false representations to investors about the business’s progress to keep them invested. He inflated user numbers, misrepresented revenue-generating partnerships, and forged documents to support these falsehoods.
Between 2012 and 2016, Zinszer used a substantial portion of the invested money to finance his lifestyle, including paying mortgages on his homes and purchasing concert tickets and jewelry. Meanwhile, he filed false tax returns underreporting his income in tax years 2013-2016.
The investigation by the Internal Revenue Service – Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation (FBI) revealed that Zinszer’s scheme was extensive. He created fictitious user accounts to inflate user numbers and forged a letter of intent to purchase Brazzlebox for millions of dollars.
Zinszer faces a maximum term of imprisonment of 20 years for his wire fraud conviction, and 3 years for his conviction for willfully filing false tax returns. He also faces a maximum fine of $250,000 and a term of post-imprisonment supervised release of up to 3 years.
Sentencing is scheduled for November 29, 2021, in Syracuse before Senior United States District Court Judge Frederick J. Scullin, Jr. The case is being prosecuted by Assistant United States Attorneys Michael D. Gadarian and Geoffrey J.L. Brown.
Zinszer’s scheme highlights the importance of due diligence when investing in startups. Investors should be cautious of exaggerated claims and always research a company’s financials and leadership before investing.
The case serves as a reminder that white-collar crimes can have severe consequences, including lengthy prison terms and significant fines.
Related Federal Cases
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Key Facts
- State: New York
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: DOJ Press Release â†â€â€
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