Federal prosecutors say Craig Jerabeck of Rochester pleaded guilty to conspiracy to commit wire fraud and to filing a false tax return in federal court in Rochester.
The 57-year-old Jerabeck was a co-founder of 5LINX Enterprises, a marketing company based in Rochester. It used chain marketing, recruiting representatives to sell products including utility and telecommunications services. Jerabeck was the president and CEO.
Jerabeck and his partners were accused of siphoning off more than $2.3 million that was supposed to be distributed to the company’s investors and keeping it for themselves.