Newport 'Dr Pepper' Executive Bound For Prison: US Attorney

NEWPORT, RI—Michael Lynch, 53, of Newport, was sentenced to 33 months in federal prison for fraud and tax evasion, the U.S. Attorney's Office said. Lynch was accused of bilking Dr. Pepper for more than $1.7 million in phony invoices from Seacoast Unlimited Marketing and Promotions, LLC, which, in reality, was a business he set up in his wife's name. The money was supposed to pay for sample products, discounts and promotions, but none was ever provided. He also failed to pay taxes on $386,320 in income. Lynch admitted to fraud and tax evasion in April, the U.S. Attorney's Office said. Specifically, he pleaded guilty to wire fraud and filing a false tax return.

In addition to the 33 months, Lynch will serve two years supervised probation after he leaves prison. He's also required to pay back the money to Dr. Pepper and the Internal Revenue Service.

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