5LINX defendant seeks end to post-release supervision

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Two of the three defendants in the 5LINX fraud case have asked for an early end to the post-release supervision portion of their sentence. One has been denied and the other request is still pending.

The trio of Jason Guck, Craig Jerabeck and Jeb Tyler pleaded guilty to fraud and tax evasion.

Jerabeck and Tyler were sentenced in December 2018 to 14 months in prison. Guck was sentenced in May 2019 to seven months in prison.

All three were also sentenced to three years of post-release supervision.

The men started 5LINX Enterprise Inc., a multi-level marketing company based in Rochester that used independent representatives to sell products and services and to recruit additional representatives.

Jerabeck was president and CEO. Guck was vice president and secretary, and Tyler was vice president.

In 2006 they sold 5LINX stock to three investment firms for $5.5 million. Subsequently they sold about $2.3 million in products without sharing the proceeds with the investors, contrary to an agreement with the investors.

Last month U.S. District Court Judge David G. Larimer denied Jerabeck’s request to have his post release supervision terminated.

“Defendant has not provided any exceptional circumstance warranting early termination; nor has he indicated any reason why continued supervision for the remaining nine months of his term would be a burden,” Larimer wrote.

Jerabeck initially wrote a letter to Larimer in January seeking early termination of his post-release supervision. Jerabeck wrote that he was released from federal prison in December 2019 after serving 11 months of his14-month sentence.

“I did my best to be a positive force while I was at camp, working in the education department, helping my fellow inmates with a number of re-entry education courses; specifically resume writing and interviewing workshops,” Jerabeck wrote.

“I used my free time teaching real estate classes on my own, at night, with the endorsement of the education department. This was beneficial to me and I believe it was a big help to other inmates, many of which had difficulty reading and writing,” he wrote.

Jerabeck wrote in the letter that, before committing the crimes, he had a successful business career.

“I have made significant charitable contributions over my career and always strived to be a good provider to my family and a good partner in the community. Unfortunately, I did make a mistake, a significant one, and I have paid a hefty price for that mistake. I am asking your help in moving on from that mistake,” he wrote.

Since his release from prison, Jerabeck wrote, he has worked as a marketing and finance manager for a restaurant.

“This position includes bartending and general maintenance which has been very humbling. I am also doing property management through my own new company,” he wrote.

Jerabeck wrote that he has “been involved with local disabled veterans in Canandaigua doing what I can by making donations of food, clothing and providing mentorship.”

Jerabeck remined Larimer that his home was sold and $500,000 in proceeds went toward the restitution he was ordered to pay.

Jerabeck wrote that he hopes to move to Florida to find a job and make a “fresh start.”

He has applied for some jobs there, “however my criminal record is making it very difficult to get traction,” he wrote.

“As a result, I am pursuing my real estate license and new property management opportunities. I would like to make a clean break from the past few years and start with a clean slate free of any encumbrances of probation and my past legal issues,” he wrote.

The federal Probation Department opposed Jerabeck’s request.

“Since January 2020 the defendant has marginally complied with his supervision conditions,” a probation official wrote in a letter to Larimer.

According to the official, Jerabeck has maintained employment and reported to the department monthly. He has obtained a Florida real estate license and has worked in that capacity from his home in Canandaigua.

“However the defendant has not provided employment verification on a consistent monthly basis,” the probation official wrote.

And Jerabeck still owes more than $2.4 million in restitution, the official noted.

Meanwhile, Guck’s attorney, Joseph S. Damelio, sent a letter to Larimer on his client’s behalf asking for an early end to Guck’s post release supervision.

Guck’s post-release supervision is scheduled to end in about seven months, according to the letter dated May 11.

“Mr. Guck is gainfully employed at this time in sales market training,” Damelio wrote.

“He also continues to volunteer his time and energy to various charities and not-for-profit entities such as Success Training Institute and One Community USA,” Damelio wrote.

Guck’s request is pending.

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