Swartz Sentenced To 150 Months In Jreck Wire Fraud CasePosted: Updated:
The longtime owner of Jreck Subs has been sentenced to more than 12 years in federal prison on wire fraud and tax evasion charges.
Christopher Swartz of Watertown was sentenced in U.S. District Court in Utica Wednesday to 150 months in prison and three years' post-release supervision..
He was also ordered to pay more than $21 million in restitution to his investment fraud victims and about $4.6 million to the IRS for unpaid taxes.
Federal prosecutors said Swartz victimized 81 people, bilking many of them out of their life's savings or retirement accounts.
Prosecutors say Swartz conducted a decade-long scheme to steal from investors, raid Jreck and other businesses of their cash, and then conceal it from the public, federal investigators, and the IRS.
The government says it amounts to $24.5 million, plus millions more in unpaid taxes.
He pleaded guilty to tax evasion and wire fraud in September 2016.
He was also ordered to serve three years of supervised release after he's released from prison.
Swartz is in federal custody and will begin serving his sentence immediately.
Jreck Subs continues to operate under federal supervision. Many of the stores are owned by other people, separate and apart from the corporation Swartz controlled.