Former 5LINX owner pleads guilty to federal charges

May 1, 2018
Originally published on May 1, 2018 3:49 pm

Federal authorities say that a Rochester businessman has pleaded guilty to wire fraud and tax charges for what officials say was his role in a multi-million dollar marketing scheme.

The U.S. Attorney’s office says that 57 year old Craig Jerabeck pleaded guilty to conspirary to commit wire fraud and filing a false tax return.

Authorities say that in 2001, Jerabeck, along with co-defendants Jeb Tyler and Jason Guck, started 5LINX, a multi-level marketing company in Rochester which offered utility and telecom services, health insurance, nutritional supplements and business services.

Officials say 5LINX used independent representatives to sell products and services and also to recruit additional representatives.

Jerabeck was president and CEO, Guck was Vice President and Secretary and Tyler was also a five president. The U.S. Attorney’s office says that in 2006, Jerabeck, Tyler and Guck sold 5LINX stock for $5.5 million to three investment companies.

Authorities also say that between 2010 and 2016, the company sold and distributed products for a Florida vendor. Officials say that as part of a plea agreement, Jerabeck admitted that he, together with Guck and Tyler, by companies they owned, received about $2.3 million from a Florida vendor without the knowledge of 5LINX’s investors, board of directors or other stockholders.

Jerabeck, according to the U.S. Attorney’s office, also provided false information on his personal tax returns for the years 2011 through 2013 and 2015. As part of his plea, Jerabeck has agreed to forefeit his interest in property in Middlesex in Yates County.

Authorities say that charges are pending against Guck and Tyler.  Jerabeck will be sentenced at a later date.