5linx Founders Charged With Wire Fraud
The founders of 5linx Craig Jerabeck, 56, of Rochester, Jeb Tyler, 44, of Penfield, and Jason Guck, 42, of Victor, were charged by federal prosecutors on 3/23/2017 with wire fraud and conspiracy. Each faces 20 years in federal prison and a half-million dollar fine if convicted.
5linx was founded in 2001. 5linx is a MLM scam I reported on back in January of 2014. They sold a variety of products and monthly services through their representatives. Their claimed five principles were: VISION, INTEGRITY, OPPORTUNITY, FREEDOM, and SUCCESS.
From 2001 to 2015, Jerabeck was the Co-Founder, President and Chief Executive Officer of 5linx, and from at least 2001 to present Guck and Tyler were Co-Founders and Vice Presidents of 5linx.
Here are the details of the charges against them:
Beginning in approximately 2009 and continuing until at least May 15, 2015, without the knowledge, permission, or authorization of 5linx investors, the three Co-Founders of 5linx created and inserted fraudulent contracted representatives into the 5linx direct sales team in order to make additional income in excess of their compensation. For the purpose of executing the scheme and artifice, the three Co-Founders set up fraudulent 5linx independent contractor accounts under multiple company names which were controlled by the three Co-Founders individually or together. These shell companies were utilized in order to conceal the real owner’s information from employees and the investors.
The scheme generated multiple financial wire transactions and additional financial electronic transfers between 5linx and bank accounts or debit cards owned individually and collectively by the three Co-Founders. The three Co-Founders caused millions of dollars to be diverted from 5linx…. – Source 5Linx Founders Criminal Complaint
Four million dollars or more has been taken by their fraud.
They were arraigned in U.S. District Court before U.S. Magistrate Judge Jonathan Feldman and released. They are scheduled to return to court May 5.