Tuesday, March 30, 2010

MOD Systems Co-Founder Arrested

The co-founder and former CEO of Seattle-based MOD Systems, Mark Philips, has been arrested for wire fraud, according to the U.S. Attorney's office. According to the office, Philips was arrested after investigation of suspected embezzlement of the firm's corporate funds. The attorney's office said that the company notified federal investors of the suspected embezzlment on March 16th, and that it appeared that a series of wire transfers made out of the company's account were transferred to a bank account controlled by Phillips' girlfriend and used to pay for luxuries--plus also invested in another startup. The news was first reported by TechFlash.