Westford Man Charged with Fraud and Embezzlement Scheme
BOSTON – The former CEO and co-founder of a Boston-based mobile phone music streaming service, was charged in connection with a scheme to embezzle hundreds of thousands of dollars from his employer.
David Fondots, 56, was charged by criminal complaint on one count of wire fraud. Fondots was arrested yesterday evening and made an initial appearance in federal court in Boston this afternoon.
According to the complaint affidavit, Fondots misappropriated company funds which he used for his personal benefit. It is alleged that between 2014 through 2016, Fondots caused his company to pay significant sums of money directly to himself, to a family member, and to companies controlled by a family member. Fondots used the embezzled funds to pay personal expenses for himself and his family, including car payments, legal fees, and travel, among other things.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities & Financial Fraud Unit is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.