CEO Indicted on Tax Evasion Charges
A federal grand jury indicted John Frances Griffin, of Orinda, Calif., with mail fraud and tax evasion, in a scheme in which he lied to investors and employees about making significant loans to the company he was running.
According to the indictment, Griffin, 43, was the CEO of VaporTech, Inc., a startup company in Livermore, Calif., involved in the research and development of technology which converts fuel to hot water, high-quality steam or superheated water vapor. From February 2004 to May 2006, Griffin allegedly told investors he had loaned $275,000 to VaporTech to entice them to invest in the company. The indictment also alleges that Griffin falsely told VaporTech employees he had loaned VaporTech $1 million to conceal the fact that he had taken money from the company bank account without authorization.
The indictment further charges that during the calendar years 2004 and 2005, Griffin evaded the assessment and payment of his income taxes by failing to provide his Social Security number to the VaporTech CFO, cashing his salary checks instead of depositing them, and by extensively using cash and cashier’s checks to avoid detection of his income.
If convicted, he faces up to 20 years in prison and a fine of up to $250,000.
No related posts.
Tags: mail fraud, tax evasion
