Founder of Seattle Digital-Media Company Arrested

(AP, Seattle) The founder and former CEO of a Seattle digital-media company has turned himself in to face charges he embezzled as much as $524,000.

Thirty-five-year-old Mark E. Phillips showed up at U.S. District Court before an initial appearance Tuesday afternoon. In 2005, Phillips founded MOD Systems Inc., a start-up that develops music and video downloading technology for retail kiosks.

(AP, Seattle) The founder and former CEO of a Seattle digital-media company has turned himself in to face charges he embezzled as much as $524,000.

 

Thirty-five-year-old Mark E. Phillips showed up at U.S. District Court before an initial appearance Tuesday afternoon. In 2005, Phillips founded MOD Systems Inc., a start-up that develops music and video downloading technology for retail kiosks.

 

A federal complaint charges him with two counts of wire fraud. Investigators say the money was supposedly being used to reimburse a company founded by his then-girlfriend for services provided, but those invoices were fake.

 

They say some of the money was spent on a $30,000 watch and other luxuries, some padded Phillips’ own bank account, and some he invested in another start-up.

 

Phillips resigned from the company last year.

 

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