PHILADELPHIA, Pa. — A Philadelphia man has pleaded guilty to wire fraud and tax evasion charges stemming from a scheme involving his vertical farming company, federal prosecutors announced Thursday.
John “Jack” Griffin, founder of Second Story Farming Inc., which operated as Metropolis Farms, admitted in court to defrauding two companies in 2017 by selling them vertical farming systems using inflated revenue projections and understated expense estimates.
Court documents revealed that after securing payments from the companies, Griffin used much of the money for personal expenses and to fund his company’s research and development operations, rather than delivering the promised farming systems.
Griffin also concealed income to evade taxes
Prosecutors said Griffin earned income from his business in 2017 but failed to file a required tax return. He attempted to hide his earnings by withdrawing cash from business accounts, using those funds for personal expenses, and transferring money to his wife.
Griffin is scheduled to be sentenced on October 22. He faces up to 20 years in prison for each wire fraud count and up to five years for the tax evasion charge, in addition to potential restitution and monetary penalties.
