MOD Systems co-founder Convicted of Fraud, Money Laundering in Federal Court

A co-founder and former chief executive of MOD Systems was convicted of federal fraud and money laundering charges today in federal court. The U.S. attorney’s office says Mark E. Phillips, 36, of Seattle, could get up to 20 years in prison when he’s sentenced in late May. Federal prosecutors say Phillips transferred $1.5 million from MOD Systems to his own account for a down payment on a penthouse, and also spent company money that had been transferred into a girlfriend’s account. Seattle-based MOD Systems, which makes technology to deliver movie and music files through self-service kiosks, announced in December that it was cutting 35 percent of its workforce. It had better news last fall when it raised $6 million in financing.

Trending on Xconomy

By posting a comment, you agree to our terms and conditions.

  • Brad Ware

    Sad story. I knew him many years ago when he was going to school at the UW. He was so smart it was scary. I guess he climbed right off the tree.