BOSTON – The former CEO and co-founder of a Boston-based cell phone music streaming service was sentenced Tuesday, June 29 in connection with embezzling hundreds of thousands of dollars from his employer and filing false tax returns.
David John, who recently changed his name from David Fondots, 56, was sentenced by U.S. District Court Judge Richard G. Stearns to 18 months in prison and three years of supervised release. John was also ordered to pay restitution in the amount of $187,603 to the Internal Revenue Service, as well as restitution to the victims in an amount to be determined at a later date. In February 2020, John pleaded guilty to one count of wire fraud and one count of filing false tax returns.
John misappropriated company funds which he used for his personal benefit. From 2014 to 2016, John caused his company to pay significant sums of money directly to himself, to a family member and to companies controlled by a family member. John used the embezzled funds to pay personal expenses for himself and his family, including car payments, legal fees and travel, among other things.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office; and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit and Jordi de Llano, Deputy Chief of the Securities, Financial & Cyber Fraud Unit, prosecuted the case.