The original partners of 5Linx, once one of Rochester’s fastest growing companies, cheated investors out of more than $4 million, federal authorities allege according to an article in the Democrat & Chronicle.
The illegally gained money could be as much as $11 million, court papers allege.
The three partners — Craig Jerabeck, Jason Guck and Jeb Tyler — were charged today in federal court with defrauding investors between 2009 and 2015. The three were released on bond of $100,000 a piece.
5Linx was once a highly successful network marketing company, with products ranging from nutritional supplements to wireless security systems. However, there have been clear strains in recent years between past and current 5Linx management.
The Democrat and Chronicle previously reported on allegations in a lawsuit against Jerabeck, who had left the company.
Jerabeck was accused of