During times relevant to the conspiracy, Jerabeck, Tyler, and Guck failed to disclose to the investors that they were independent contractors of 5LINX and that they were covertly receiving millions of dollars in additional compensation without the investors’ knowledge or permission. This resulted in inaccurate corporate financial documents being issued which significantly understated the company’s available cash. Those inaccurate statements were then relied upon by the investors in making financial decisions related to their investment in 5Linx. As a result, investors lost as much as $4,000,000.
The criminal complaint is the culmination of an investigation by Special Agents of the Federal Bureau of Investigations, under the direction of Special Agent-in-Charge Adam S. Cohen.
The defendants made initial appearances this morning before U.S. Magistrate Judge Jonathan W. Feldman and were released on conditions. Jerabeck, Tyler, and Guck are due back in court for a status hearing on May 5, 2017 at 9:30 a.m.
The fact that a defendant has been charged with a crime is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
Source: U.S. Department of Justice, Office of the United States Attorneys
