Leah B. Foley United States Attorney for the District of Massachusetts | Department of Justice
Federal prosecutors have charged two former executives of Mozaic Payment System, Inc. with wire fraud conspiracy, alleging they defrauded a Boston-based private equity firm out of $20 million in equity funding.
Marcus Cobb, 48, and Rachel Knepp, 39, both from Nashville, Tennessee, are accused of misleading the investment firm by presenting false financial information about their company. Cobb was indicted by a federal grand jury in Boston on November 20, 2025 and arrested in Chicago on December 8. He is scheduled to appear in federal court in Boston on January 8, 2026. Knepp had previously been charged and pleaded guilty on November 19; her sentencing is set for February 19, 2026.
According to court documents, Mozaic Payment System claimed to offer an application for processing royalty payments for performers and music industry stakeholders. However, the application reportedly did not function and generated no revenue. In spring 2023, Cobb and Knepp allegedly approached the Boston investment firm for funding while representing Mozaic as a growing and profitable business. Prosecutors say they fabricated bank and financial statements during due diligence to show false growth in revenue and cash reserves.
Based on these alleged misrepresentations, the private equity firm invested $20 million in September 2023. Prosecutors allege that Cobb and Knepp continued to provide fraudulent financial updates showing increasing revenue as Mozaic depleted its funds. The fraud was discovered by February 2025 when the company collapsed.
Wire fraud conspiracy carries a maximum sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the monetary gain or loss (whichever is greater), restitution, and forfeiture. Sentencing will be determined by a federal district court judge according to U.S. Sentencing Guidelines.
United States Attorney Leah B. Foley stated: "The details contained in the charging documents are allegations. The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law." Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Division joined Foley in announcing the charges. Assistant U.S. Attorneys Kriss Basil and Elianna Nuzum are prosecuting the case.
