5Linx
A major contributor to this appears to have a close connection with its subject. (June 2014) |
Chairman ) and majority owner
(5L Holdings, L.L.C.) | |
Products | Home and business services, nutritional supplements |
---|---|
Services | home security (through Protect America), identity theft protection, electric power, data storage, supplemental healthcare (not insurance)[1] |
Website | 5linx |
5Linx is an American multi-level marketing company headquartered in Rochester, New York, which offers utility and telecommunication services, health insurance, nutritional supplements, and business services.[1] It was founded in 2001. In 2017, the co-founders of 5LINX, Craig Jerabeck, Jeb Tyler, and Jason Guck, were indicted on multiple federal fraud charges, including wire fraud and money laundering. They admitted to defrauding $2.3 million from investors, illegally depositing company revenues into personal accounts, and failing to pay hundreds of thousands of dollars in taxes. Tyler and Jerabeck were sentenced to 14-month prison terms in December 2018.[2][3][4]
History
5LINX Enterprises, Inc. was founded by Craig Jerabek, Jeb Tyler, and Jason Guck. 5Linx was incorporated in Rochester, New York, in 2001. In 2016, 5L Holdings, LLC was formed to acquire the assets of 5 Linx Enterprises (dissolved). In September of the same year, business entrepreneur Nelson Gerard bought the majority stock of 5L Holdings, LLC and became its Chairman. 5Linx is a
As of 2015, Cook County Circuit Court Clerk
5Linx was on the
In May 2015, the company sold its telecommunications branch to Birch Communications, which reduced the company's revenue by about 30%. Farshad Tafazzoli was named President in 2016.[12]
Litigation
In September 2015, the new management of the 5LINX sued Craig Jerabeck, 5LINX Enterprises' former CEO, alleging that he breached his contract with the company by poaching 5LINX representatives for other network marketing companies.[13]
In September 2017, the three co-founders of 5LINX - Jerabeck, Tyler, and Guck - were indicted on multiple federal fraud charges, including wire fraud and money laundering.[2][14] The trio admitted to defrauding $2.3 million from investors, illegally depositing company revenues into personal accounts, and failing to pay hundreds of thousands of dollars in taxes. In December 2018, Tyler and Jerabeck were sentenced to a 14-month prison term for fraud and filing false tax returns and were ordered to pay back $2.3 million in restitution to investors, as well as $118,628 in unpaid taxes to the IRS.[3][4] In May 2019, Jason Guck was sentenced to a 7-month prison term.[15]
References
- ^ a b "5linx product portfolio". 5Linx. Retrieved 7 September 2015.
- ^ a b Cleveland, Will. "Former 5LINX partners indicted on federal fraud charges". DemocratAndChronicle.com. USY Today. Retrieved 20 September 2017.
- ^ Rochester Democrat and Chronicle. Retrieved January 5, 2019.
- ^ a b "Former 5LINX president sentenced to federal prison for taking millions from investors". WHAM-TV. December 6, 2018. Retrieved January 5, 2019.
- ^ a b "BGA: Chicago pols push controversial sales program 5Linx". Chicago Sun-Times. Better Government Association. December 5, 2015. Retrieved January 12, 2016.
- Chicago Sun Times. Retrieved January 5, 2019.
- ^ Inc. Magazine profile
- ^ "RBA Celebrates the 2009 Rochester Top 100". Rochester Business Alliance. Archived from the original on 2013-01-12. Retrieved 2012-09-24.
- ^ "Rochester Top 100 honored at gala luncheon". Rochester Business Alliance. Archived from the original on 2014-08-11. Retrieved 2013-02-25.
- ^ "2011 Rochester Top 100". Rochester Business Alliance. Archived from the original on 2012-11-02. Retrieved 2012-09-24.
- ^ "2012 Rochester Top 100". Rochester Business Alliance. Archived from the original on 2013-04-14. Retrieved 2013-02-25.
- ^ Clausen, Todd (October 2, 2015). "5Linx names former city chief of staff as CEO". USA Today. Retrieved January 12, 2016.
- ^ Craig, Gary (January 16, 2016). "5Linx current, past leaders tangled up in lawsuit". Democrat & Chronicle. USA Today. Retrieved October 22, 2016.
- ^ "5LINX defendants face fraud charges". RBJ.net. Rochester Business Journal. 20 September 2017. Retrieved 20 September 2017.
- ^ Craig, Gary. "5Linx co-founder sentenced to seven months in prison for his role in $2.3 million fraud". Rochester Democrat and Chronicle. Retrieved 2020-02-21.