Former CEO of E-Waste Recycling Firm Sentenced to 10 Years in Prison

SEATTLE (Scrap Monster): Former CEO of the Hickory, N.C., -based e-scrap recycling startup, Zloop, founded in 2012, has been sentenced to a decade in prison.

The U.S. District Judge Robert J. Conrad, Jr. sentenced Robert M. Boston, 54, belonging to Hickory, on charges of conspiracy and fraud. The judge also ordered that Boston is responsible for more than $27 million in restitution to victims. Further, he was also ordered to forfeit his interests in several properties. The trial was held during December last year. Boston’s co-defendant and co-founder of the startup firm, Robert S. LaBarge was also sentenced to 2 years in prison.

According to press release from federal prosecutors, Boston has been convicted on all counts of conspiracy, wire fraud, securities fraud and money laundering. As per court documents, Boston and LaBarge defrauded franchisees, investors and lenders of the company, thereby obtaining millions of dollars which were largely spent for personal needs. Boston could have drawn legitimate salary as CEO, but his greed landed the startup in trouble due to lack of crucial funding, documents said.

Founded in 2012 as e-waste recycling company, the defendants began marketing Zloop franchises the same year. It also raised money through the sale of equity. In 2015, the company filed for bankruptcy. The Zloop assets were auctioned off to a New Hampshire-based e-scrap company in 2016.

This story originally appeared in www.resource-recycling.com