BOSTON – A former tech CEO is facing the music for a different kind of tune. David Fondots, 56, of Westford, Massachusetts, was hit with a federal wire fraud charge yesterday, accused of systematically pilfering funds from the Boston-based mobile phone music streaming service he co-founded. The feds allege a brazen scheme to line his own pockets, diverting company cash for personal expenses over a two-year period.
According to court documents unsealed today, Fondots allegedly used his position to authorize significant payments – not to legitimate business expenses – but directly to himself, a family member, and shell companies controlled by that same relative. The scheme reportedly ran from 2014 through 2016, and the total haul is estimated to be in the hundreds of thousands of dollars.
The complaint details a lavish lifestyle funded by alleged ill-gotten gains. Fondots is accused of using the stolen money to cover everything from car payments and legal fees to family travel. It’s a classic tale of executive greed, investigators say, where the top dog helped himself to the company coffers while potentially jeopardizing the livelihood of employees and the future of the business.
Fondots was arrested yesterday evening and made an initial appearance in federal court in Boston this afternoon. If convicted on the wire fraud charge, he’s looking at a maximum sentence of 20 years behind bars, three years of supervised release, and a hefty fine of $250,000 – or twice the amount of money he allegedly stole, whichever is greater. A federal district court judge will ultimately determine the sentence, taking into account sentencing guidelines and other relevant factors.
The investigation was a joint effort led by United States Attorney Andrew E. Lelling, Joseph R. Bonavolonta, Special Agent in Charge of the FBI’s Boston Field Office, and Kristina O’Connell, Special Agent in Charge of the IRS’s Criminal Investigation in Boston. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities & Financial Fraud Unit is handling the prosecution.
It’s crucial to remember that the allegations contained in the complaint are just that – allegations. Fondots is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. But the feds seem confident they have a solid case, and the evidence presented could spell trouble for the former executive.
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Key Facts
- State: Massachusetts
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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