PHILADELPHIA, PA — John “Jack” Griffin, 62, of Philadelphia, Pennsylvania, has pleaded guilty to charges of wire fraud and tax evasion, according to an announcement made by United States Attorney David Metcalf. Griffin entered his plea before United States District Judge Chad F. Kenney on Wednesday, June 25.
Griffin was the principal and founder of Second Story Farming Inc., which operated as Metropolis Farms. His company sold vertical farming systems and developed related sustainable technologies. However, court documents and statements revealed that in 2017, Griffin provided two companies with significantly inflated revenue projections and understated costs for the operation of the vertical farms they intended to purchase.
Relying on Griffin’s projections, the companies paid Second Story Farming to establish the farms. Instead of fulfilling the contracts, Griffin used the funds for personal expenses and to support his company’s research and development operations, leaving the companies without the functional systems they had paid for.
Additionally, Griffin failed to file a legally required tax return for 2017 despite earning income that year. He concealed his financial activities by transferring business funds to his wife, withdrawing cash, and paying personal expenses directly from business accounts.
Griffin now faces a possible maximum penalty of 20 years in prison for each wire fraud charge and up to five years for the tax evasion charge. Sentencing is scheduled for October 22.
The investigation was conducted by IRS Criminal Investigation, the FBI, and the United States Postal Inspection Service. Assistant U.S. Attorney Francis Weber and Trial Attorney Catriona Coppler of the Department of Justice’s Tax Division are prosecuting the case.
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