Arrest warrants were issued on Thursday, March 23st, for 5LINX co-founders Jason Guck and Jeb Tyler and former 5LINX CEO, Craig Jerabeck, in conjunction with a criminal complaint filed by the Department of Justice earlier this week.
The complaint alleges the three men…
knowingly devise(d) a scheme and artifice to defraud and to obtain money by means of false and fraudulent pretenses, representations and promises.
The defendants engaged in multiple schemes to defraud investors by diverting company money away from 5LINX and hiding it in accounts controlled by and for the benefits of the defendants.
Beginning in approximately 2009 and continuing until at least May 2015, without the knowledge, permission, or authorization of the investors, the defendants created, and inserted fraudulent contracted representatives into the 5LINX direct sales team in order to make additional income in excess of their compensation plan.
For the purpose of executing the scheme and artifice, the defendants set up fraudulent 5LINX independent contractor accounts under multiple company names which were actually controlled by the defendants individually or together.
These shell companies were utilized in order to conceal the real owner’s information from employees and the investors.”
5LINX Co-Founders Charged With Wire Fraud and Conspiracy
According to the U.S. Attorney’s Office, the three men were charged with wire fraud and conspiracy, and illegally diverting more than $4 million of company money into their own pockets.
In an affidavit, FBI Special Agent Kristin Gibson said, the amount of looted money could be as much as $11 million!
If convicted, Jason Guck, Jeb Tyler and Craig Jerabeck face up to 20 years in prison and a fine of $250,000.
It’s important to remember that these men have only been charged and have NOT been found guilty yet.
Having said that, I am really disturbed by the allegations listed in this criminal complaint.
This is another serious blow to the Network Marketing industry and a primary example of why many people believe multi-level marketing is a scam!
My Message To 5LINX Representatives
Dear 5LINX Representative,
I have never been a 5LINX representative or customer but I do have friends who are so I know you are probably very disappointed right now.
However, I sincerely hope that this unfortunate news does not discourage you from building your business in the network marketing industry.
For some of you 5LINX representatives this may be your very first network marketing company and you might being feeling like you were duped!
Well keep your head up, the network marketing business model is sound.
These types of things happen from time to time…some companies recover, some don’t…but keep pressing forward until YOU achieve the goal you have set for yourself in this industry!
5LINX has a public message to their representatives about the incident posted on their website.
Final thoughts on the 5LINX Co-Founders charged with fraud
Obviously this type of news will have a major impact on the company, more importantly on 5LINX representatives that are working hard to make sales or sponsor new representatives into their team.
If you are a 5LINX representative you may be wondering whether you should leave the company or not.
In my opinion I think its still a little too early to say…
A great way to monitor where a company stands in the market place is website traffic (visitors). The 5LINX website has been steadily declining in traffic since November 2016.
So continue to watch the company’s traffic stats. If it continues to decline then you may need to pack your bags and head for the nearest lifeboat.
Another thing you can do is keep your eye on what the top 5LINX leaders do. If the majority of them announce their departure or silently jump ship then that is not a good sign.
Could this potentially be the beginning of the end for 5LINX?
Possibly….but we’ll just have to wait and see!
Your Network Marketing Company is failing. They are failing to teach you modern day business building strategies. They are failing to teach you the secrets of the top earners, and because of this you’re staying broke. The pain, struggles, and the frustration you have endured while building your business ends, right here, right now. If you’re struggling to build your business, tired of rejection, bugging your friends and family, I can teach you how to turn your business around, click here to GET HELP NOW!!
Your comments are welcomed below. If you are a 5LINX representative please feel free to share your thoughts or experiences.