Former Music Streaming CEO Agrees To Plead Guilty To Embezzlement

BOSTON — The former CEO and co-founder of a Boston-based mobile phone music streaming service, agreed to plead guilty in connection with a scheme to embezzle hundreds of thousands of dollars from his employer and filing false tax returns, according to the U.S. Attorney Andrew Lelling and the FBI.

David John, 56, of Westford, who recently changed his name from David John Fondots, was charged by information with one count of wire fraud and one count of filing false tax returns. In June, he was arrested and charged by criminal complaint under the name David Fondots.

According to court records, in June 2018, the government learned that he had changed his name from David John Fondots to David John but did not inform Pretrial Services.

Fondots who founded Mariposa Holdings, misappropriated company funds which he used for his personal benefit, according to the court documents.

From 2014 to 2016, Fondots caused his company to pay significant sums of money directly to himself, to a family member, and to companies controlled by a family member. He then used the embezzled funds to pay personal expenses for himself and his family, including car payments, legal fees, and travel. Fondots is also charged with failing to report the illegal income to the IRS over the period of his embezzlement scheme.

The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, restitution, and forfeiture. The charge of filing false tax returns provides a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000.

A plea hearing has not yet been scheduled.

Westford Man Accused Of Embezzlement, Fraud

Patch reporter Jenna Fisher can be reached at Jenna.Fisher@patch.com or by calling 617-942-0474. Follow her on Twitter and Instagram (@ReporterJenna).