Jason Guck, a co-founder of the multi-level marketing company 5Linx, received a seven-month prison sentence recently for his role in a scheme involving wire and tax fraud. His sentencing concludes the Department of Justice's prosecution against the company's three original owners.

Prosecutors in the Western District of New York demonstrated Guck, along with fellow co-founders Jeb Tyler and Craig Jerabeck, orchestrated a long-running scheme to siphon millions from the Rochester-based company. They diverted funds intended for business operations into their personal accounts. The fraud impacted 5Linx investors and stockholders who believed their money supported legitimate business growth.

The trio then attempted to conceal these illicit gains through a series of tax fraud maneuvers. They filed false corporate tax returns and failed to report income to the Internal Revenue Service. This deliberate obfuscation aimed to bury the paper trail of their financial misconduct.

5Linx, founded in 2001, operated as a multi-level marketing firm. It offered telecommunications, energy, and other services. The company recruited a network of independent representatives to sell its products, often attracting investors through promises of high returns.

Jeb Tyler and Craig Jerabeck previously received 14-month prison sentences for their parts in the same fraud. Their convictions also included charges of wire and tax fraud, reflecting a coordinated effort to defraud the company's stakeholders and the government.

Beyond the prison term, Guck was ordered to forfeit $53,000 in assets, representing proceeds from his criminal activities. Court records show the total losses to investors and stockholders ran into the millions, prompting additional restitution orders against the other defendants.

The federal investigation into 5Linx leadership began several years ago. It culminated in criminal charges filed against the three founders in 2017. Their guilty pleas acknowledged their roles in the conspiracy to defraud. Guck's sentencing marks the conclusion of the Department of Justice's prosecution against the original leadership of 5Linx.