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Third 5LINX defendant pleads guilty
Third 5LINX defendant pleads guilty
A third and final defendant in the 5LINX fraud case has pleaded guilty.
On Monday, Jason Guck, 43, of Victor, pleaded guilty to conspiracy to commit wire fraud and filing a false tax return before U.S. District Court Judge David G. Larimer.
Guck is facing a maximum penalty of 20 years in prison and a fine of $250,000.
In 2001 Guck, Craig Jerabeck, and Jeb Tyler started 5LINX Enterprise, Inc., a multi-level marketing company headquartered in Rochester, which offered utility and telecommunications services, health insurance, nutritional supplements and business services.
5LINX used independent representatives to sell products and services and to recruit additional representatives. Jerabeck was president and chief executive officer. Guck was vice president and secretary. And Tyler was vice president.
In 2006, the men sold 5LINX stock for $5.5 million to three investment companies, Trillium Lakefront Partners III, L.P.; Trillium Lakefront Partners III, NY L.P.; and Shalam Investment Co., L.L.C.
Guck admitted to selling 5LINX products to a Florida vendor and, without the knowledge of the investors, board of directors or other stockholders, the three men had the vendor pay them personally, or paid companies they owned about $2.3 million, which their stockholders agreements prohibited them from receiving.
5LINX, the investors, and stockholders should have received the money, according to the U.S. Attorney’s Office.
Guck also either failed to file tax returns for some years, or filed returns with false or missing information, which resulted in a tax loss of $778,718, prosecutors said.
Under Guck’s plea agreement, he will forfeit various assets, including approximately $105,000.
Jerabeck and Tyler have pleaded guilty to similar charges and are awaiting sentencing.
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