PROVIDENCE – Michael Lynch, of Newport, a former sales executive for Dr. Pepper/Seven Up Inc., a subsidiary of Dr. Pepper Snapple Group, was sentenced to 33 months in federal prison for submitting up to $1.7 million worth of fraudulent invoices to Dr. Pepper through a promotions and marketing company he formed in his wife’s name, according to U.S. Attorney General for the District of Rhode Island Stephen G. Dambruch Monday.
Lynch admitted to submitting more than 200 fraudulent invoices to Dr. Pepper from January 2007 until Nov. 29, 2017, through Seacoast Unlimited Marketing and Promotions LLC, which he incorporated in April 2003. Lynch also admitted he failed to declare the income he derived from the fraudulent company on the joint federal tax filings he filed with his wife.
Lynch pleaded guilty Feb. 27 to wire fraud and filing a false tax return.
Lynch was ordered to serve two years supervised release on completion of his term of incarceration and was ordered to pay full restitution to Dr. Pepper and pay his owed taxes to the IRS. The taxes owed total $386,320.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
