Convicted RI “Dr. Pepper Exec” Has Stiffed Government of $2 Million, Claims U.S Attorney
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Convicted RI “Dr. Pepper Exec” Has Stiffed Government of $2 Million, Claims U.S Attorney
The scheme, according to the U.S. Attorney’s office, was orchestrated through a promotions and marketing company he formed in his wife’s name.
At sentencing in 2018, U.S. District Court Chief Judge William Smith also ordered Lynch to serve two years supervised release upon completion of his term of incarceration, to pay full restitution to Dr. Pepper, and to pay taxes owed to the Internal Revenue Service.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThis week, the federal government said that Lynch has yet to pay a fraction of what is owed.
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In an application for “writ of garnishment” filed in federal court on December 9, the U.S. Attorney’s office alleges Lynch has only paid $3,786 toward the judgment —“ leaving a total balance due of $2,099.683.”
Lynch’s “last known address” was listed on Coggeshall Avenue in Newport; Fidelity Investments is also named as a garnishee.
As the federal government reported in 2018:
In February, Michael Lynch, 53, of Newport, R.I., admitted to the Court that in April 2003, he incorporated Seacoast Unlimited Marketing and Promotions, LLC (Seacoast) in his wife’s name, and through Seacoast, from January 2007 until November 29, 2017, submitted to Dr. Pepper more than 200 fraudulent invoices totaling $1,716,949 for services such as promotional signs and banners, delivery of sample products to retail stores and the offering of discount prices to retail stores.
None of the services billed to and paid for by Dr. Pepper were provided.
Additionally, Lynch admitted that he failed to declare any of the income he derived through Seacoast on the joint federal tax filings he filed with his wife. The tax loss applicable to the defendant’s conduct totals $386,320.
Lynch pleaded guilty on February 27, 2018, to wire fraud and filing a false tax return.