John Frances “Jack” Griffin, a 62-year-old Philadelphia business owner, has been sentenced to three years in prison for wire fraud and tax evasion. The sentencing was announced by United States Attorney David Metcalf. In addition to the prison term, Griffin will serve three years of supervised release and must pay $899,948 in restitution. Of that amount, $776,205 is designated for victims of the fraud while $123,743 will go to the Internal Revenue Service.
Griffin was the principal and founder of Second Story Farming Inc., which operated as Metropolis Farms. The company focused on vertical farming—a method that grows crops indoors in stacked layers to save space—and developed related technologies and systems for customers.
According to court documents and statements, in 2017 Griffin sold vertical farming systems with necessary equipment and instructions to two companies. He provided these purchasers with financial projections that significantly exaggerated expected revenues from the farms while minimizing likely expenses. The buyers relied on these projections when making their purchases.
Instead of using the funds as promised to deliver vertical farms, Griffin diverted much of the money for personal use, including paying his mortgage and purchasing clothing from Nieman Marcus.
Between 2015 and 2018, Griffin earned more than $650,000 through Second Story Farming but failed to file tax returns during those years. Authorities said he tried to hide his income by withdrawing cash from various accounts, paying personal expenses directly from business accounts, and transferring money from his business account to his wife.
The investigation was conducted by IRS Criminal Investigation, the FBI, and the U.S. Postal Inspection Service. Assistant United States Attorney Francis Weber and Trial Attorney Catriona M. Coppler from the Department of Justice Criminal Division’s Tax Section prosecuted the case.
"This case demonstrates our commitment to holding accountable those who defraud others for personal gain," said U.S. Attorney David Metcalf.
