Third And Final Former 5linx Owner Pleads Guilty To Wire Fraud And Tax Charge For His Role In Multi-Million Dollar Marketing Scheme
CONTACT: Barbara Burns
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ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jason Guck, 43, of Victor, NY, pleaded guilty to conspiracy to commit wire fraud and filing a false tax return for the year 2012 before U.S. District Judge David G. Larimer. The charges carry a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Richard A. Resnick, who is assisting AUSA Craig R. Gestring in the prosecution, stated that in 2001, Guck, Craig Jerabeck, and Jeb Tyler started 5LINX Enterprise, Inc. (5LINX), a multi-level marketing company headquartered in Rochester, NY, 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 of 5LINX.
In June 2006 and July 2006, Guck, Tyler, and Jerabeck sold 5LINX stock for $5,500,000 to three investment companies, Trillium Lakefront Partners III, L.P.; Trillium Lakefront Partners III, NY L.P.; and Shalam Investment Co., L.L.C. (collectively known as "the Investors"). Guck admitted in the plea agreement that from in or about May 2010 to April 2016, 5LINX sold and distributed products for a Florida vendor. Guck, along with Tyler and Jerabeck, and without the knowledge of the Investors, Board of Directors, or other stockholders, conspired and agreed to cause the Florida vendor to pay them personally or companies they owned approximately $2,310,510, which their Stockholders Agreements prohibited them from receiving. 5LINX, its investors, as owners between 2006 and January 2014, and as creditors thereafter, and stockholders were entitled to and should have received such funds instead of defendant, Guck, and Tyler.
Assistant U.S. Attorney Resnick further stated that Guck solely owned YaYa Holdings Corporation. Guck provided material false information on YaYa Holdings, Inc.’s federal tax returns for the fiscal years ending July 31, 2012, and 2013, and failed to file corporate returns for the fiscal years ending July 31, 2014, and 2015. In addition, for fiscal years ending July 31, 2012, and 2013, Guck failed to report income the corporation received from 5LINX. Also, for the fiscal years ending July 31, 2014, and 2015, the corporation had income that Guck should have reported on corporate tax returns for those years. The false returns and failure to file returns resulted in a tax loss of approximately $778,718.
As part of Guck’s plea, the defendant will forfeit various assets previously seized by the government, including approximately $105,000.
In September 2017, Guck, along with Craig Jerabeck and Jeb Tyler, were charged in a superseding indictment. Jerabeck and Tyler have were previously convicted and are awaiting sentencing.
Today’s plea is the culmination of an investigation by Special Agents of the Federal Bureau of Investigations, under the direction of Special Agent-in-Charge Gary Loeffert, and the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent in Charge, New York Field Office.
Sentencing is scheduled for October 16, 2018, at 2:00 p.m. before Judge Larimer.