Newporter, Dr. Pepper Exec Pleads Guilty to Fraud, Tax Evasion

NEWPORT, RI— Michael Lynch, of Newport, pleaded guilty on Tuesday to charges he billed Dr. Pepper for more than $1.7 million in fraudulent invoices. According to the U.S. Attorney's Office, Lynch, 52, is a national sales executive for Dr. Pepper/ Seven Up, Inc. Prosecutors say in April 2003, he started a corporation (Seacoast Unlimited Marketing and Promotions, LLC) in his wife's name. Starting in January 2007, up until the end of November 2017, he sent more than 200 invoices to Dr. Pepper for promotional signs, discount offers and delivery of sample products. The bills totaled $1,716, 949, but none of the services or products was ever actually produced.

He also didn't report the income on his joint federal income tax returns. The tax loss amounted to $386,320.

Lynch was charged with wire fraud and filing a false tax return. Sentencing is scheduled for June 1.

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