Rocky River man was sentenced to more than two years in prison for laundering money from investors

A Rocky River man was sentenced to more than two years in prison for laundering money from investors and using at least some of it for personal expenses, said U.S. Attorney Justin E. Herdman and IRS Special Agent in Charge Ryan L. Korner.

Mark Dulik, 31, was sentenced to 27 months in prison and ordered to pay $1.1. million in restitution after previously pleading guilty to four counts of money laundering.

Dulik owned and operated Rework, Inc., based in Rocky River, which provided cloud-based software services. Dulik convinced several individuals to invest in Rework by convincing them that it was a legitimate, on-going business – when in fact Dulik converted the investors’ funds for his own personal use to pay for his lavish lifestyle, according to the court documents.

Investigators determined Dulik used new investors’ money to pay dividends/interest payments back to older investors, representing to the earlier investors that the money represented profits from the company, when in fact it operated more like a Ponzi scheme, according to court documents.

“This defendant mislead investors, causing pain and stress to his victims,” Herdman said.

“Behind every lie is a choice,” Korner said.  “Mr. Dulik lied to his family, friends and business associates and his investment scheme had devastating effects on his victims.”

The matter is being prosecuted by Assistant U.S. Attorney Mark S. Bennett following an investigation by the Internal Revenue Service’s Criminal Investigation.