Wednesday, March 2, 2011

MOD Systems Co-Founder Convicted

Mark E. Phillips, one of the co-founders of Seattle-based MOD Systems, a developer of retail kiosks used for loading memory and devices with music and media, has been convicted of four counts of wire fraud, mail fraud, and two counts of money laundering. According to the U.S. Department of Justice, he faces up to 20 years in prison when sentenced on May 27th. Phillips was convicted after a nine day jury trial in the U.S. District Court in Seattle. Phillips was arrested after the company notified federal investigators of suspected embezzlement of its corporate funds last year. Phillips had been both a director of the firm and CEO.