A Philadelphia entrepreneur who built a business around the promise of cutting-edge vertical farming technology was sentenced Wednesday to three years in federal prison for defrauding customers and evading taxes, federal prosecutors said.
John Frances "Jack" Griffin, 62, was sentenced by U.S. District Judge Chad F. Kenney to 36 months in prison followed by three years of supervised release for wire fraud and tax evasion. Griffin was also ordered to pay $899,948 in restitution, including $776,205 to fraud victims and $123,743 to the Internal Revenue Service.
U.S. Attorney David Metcalf announced the sentence, which stems from Griffin's role as principal and founder of Second Story Farming Inc., a company that did business as Metropolis Farms. The company marketed itself as a leader in vertical farming, an agricultural method that grows crops indoors in stacked layers to reduce land use.
According to court filings, Griffin sold vertical farming systems in 2017 to two companies, providing equipment, materials, and operational guidance. Prosecutors said Griffin supplied financial projections that dramatically overstated expected revenues while understating operating costs, inducing the buyers to purchase the systems based on misleading information. Instead of using the funds to deliver the promised farms, Griffin diverted most of the money to cover personal expenses, including mortgage payments and high-end clothing purchases, prosecutors said.
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