Co-Founder Of Washington State Company Charged With Misappropriating As Much As $524K

Mark E. Phillips, 35, of Seattle, Washington, has been charged with two counts of wire fraud in connection with the alleged misappropriation of as much as $524,000 from MOD Systems, Inc., a Seattle-based company he co-founded and served as CEO until last year. According to prosecutors, Phillips submitted fraudulent expense reimbursements for personal expenses and personal luxury items and otherwise misappropriated company funds for personal use. The complaint resulted from an internal investigation initiated by an angel investor, Robert Arnold, into the apparent misappropriations. Bitter civil litigation has ensued between all of the parties.

Read the story here and here.

Read the criminal complaint here.

Hat Tip: Reader Joe