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.
Author: Curt Woodward
Curt covered technology and innovation in the Boston area for Xconomy. He previously worked in Xconomy’s Seattle bureau and continued some coverage of Seattle-area tech companies, including Amazon and Microsoft.
Curt joined Xconomy in February 2011 after nearly nine years with The Associated Press, the world's largest news organization. He worked in three states and covered a wide variety of beats for the AP, including business, law, politics, government, and general mayhem.
A native Washingtonian, Curt earned a bachelor's degree in journalism from Western Washington University in Bellingham, WA. As a past president of the state's Capitol Correspondents Association, he led efforts to expand statehouse press credentialing to online news outlets for the first time.
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