Proceeds from the sale of the Canandaigua Lake property will be held until the outcome of civil and criminal cases

One of the Canandaigua Lake properties owned by a 5LINX defendant in a federal fraud case is up for the sale by the U.S. Marshals Service.

In an agreement formalized Sept. 14, the U.S. Attorney's Office for the Western District of New York and an attorney for Jeb Tyler outline the conditions of the sale of the home and land at 4385 County Road 16 (West Lake Road) in the town of Canandaigua by midnight Jan. 1, although the time frame could be extended at the sole discretion of the federal government.

Tyler is represented by Rochester attorney Matthew Parrinello, who said the government has a lien on the property and his client no longer wants to carry the cost of the house, so he wants to sell it.

“Therefore we agreed to have the proceeds held until the end of the civil and criminal case,” Parrinello said. “If we win, Jeb gets the proceeds.”

A spokesperson for the U.S. Attorney's Office said it is fairly routine to enter into sales agreements in cases involving property to preserve the value of the asset.

Tyler, who lives in Penfield, was indicted in March on multiple counts, alleging his involvement in wire fraud and conspiracy in a case involving 5LINX, formerly owned by him and his co-defendants: Jason Guck of Victor and Craig Jerabeck of Rochester.

A civil complaint for forfeiture was also filed against Tyler's lakefront home, with an estimated value of $874,800, according to, and one at 90 East Lake Road in Middlesex, Yates County, owned by a limited liability company managed by Jerabeck. The Middlesex home is valued at nearly $1.8 million.

The sale agreement allows Tyler to sell his home to a qualified buyer approved by the U.S. Attorney's Office, which will review any proposed contract and decide whether to approve or reject the offer.

Tyler agrees to provide the government with full disclosure of all pending sales including closing statements, lists of disbursements and expenses and the names and addresses of prospective purchasers.

Sale and transfer of title may not be made without written consent of the U.S. Attorney's Office.

Proceeds from the sale, minus normal closing costs and attorney's fees up to $800, will be forwarded by certified or bank check to the U.S. Marshals Service to be held in an interest-bearing account pending the conclusion of the criminal case and civil and criminal forfeiture actions.

If Tyler is found guilty and a jury or the court orders forfeiture, the net proceeds will go to the government. Tyler could also enter into a plea agreement that could include forfeiting all or part of the money.

If he is found not guilty or the court or jury determines the property is not subject to forfeiture, the sale proceeds would go to Tyler.

Any damage to the property between the signing of the agreement and sale may result in civil penalties or criminal prosecution against Tyler, who acknowledges that obligation, as well as maintaining the property, including paying all tax, utility and insurance obligations while a sale is pending.

The stipulation also notes the parties agree the U.S. had probable cause to institute the action, but entering into the agreement is not an admission of guilt by Tyler, but done to preserve the value of the property.

Tyler, Jerabeck and Guck were named in a superseding indictment in mid-September, charging them with 37 counts, accusing them of defrauding investors of more than $13 million.

They are charged with 29 counts of wire fraud and one count of conspiracy to commit wire fraud, each count punishable by up to 20 years in prison and a $250,000 fine.

The new indictment also includes six counts of money laundering and one count of conspiracy to commit money laundering, charges punishable by up to 10 years in prison and a fine of $250,000. They are scheduled to be arraigned Tuesday in federal court in Rochester.

According to the indictment, the defendants, while running their multilevel marketing company 5LINX, founded in 2001, offered multiple services and products using independent representatives to sell them, and recruit additional reps in a pyramid-type operation.

They are accused of selling the company to investors in 2006 and then fraudulently causing the company, without the investors' knowledge, to pay more than $13.2 million to them through fictitious independent reps they created and made appear to have provided services to 5LINX.