Former 5LINX president sentenced to federal prison for taking millions from investors
Rochester, N.Y. (WHAM) - One of three co-founders of a Rochester marketing firm was sentenced to federal prison Thursday.
Craig Jerabeck was sentenced to 14 months in prison for conspiracy to commit wire fraud and filing a false tax return by U.S. District Judge David Larimer.
The 57-year-old former president and CEO of 5LINX Enterprises pleaded guilty earlier this year to taking $2.3 million directly from one of the company's vendors. Two of the firm's co-founders, Jeb Tyler and Jason Guck, admitted to doing the same. This violated the company's stockholders agreements; the money should have distributed among the stockholders.
All three men also admitted to withholding hundreds of thousands of dollars in tax filings.
The company that the men founded offered utility and telecommunications services, health insurance, nutritional supplements, and business services.
Jerabeck was also ordered to pay $2.3 million in restitution to the victims and $118,000 to the IRS as part of his sentence. His stake in a property on East Lake Road in Middlesex, Yates County was also ordered to be forfeited.
Court filings show attorneys for Guck are asking for a sentence of probation. His sentencing is scheduled for December 19.
The sentencing hearing for Tyler is scheduled for December 12.