Philadelphia's vision of agricultural innovation took a hard hit as John “Jack” Griffin, the man behind Second Story Farming Inc., pleaded guilty to charges of wire fraud and tax evasion. The announcement came from U.S. Attorney David Metcalf this Wednesday, signaling a downfall for Griffin, who was once celebrated for pioneering urban vertical farming through his company, also known as Metropolis Farms. According to the Department of Justice, Griffin admitted to the charges before United States District Judge Chad F. Kenney.
As reported by the DOJ, in 2017, Griffin sold vertical farming systems, which included the necessary equipment and instructions, to two companies. Prior to the deals, he purportedly provided financial projections that significantly inflated potential revenues while minimizing the expenses. The companies, acting on these projections, invested money which Griffin then funneled into his pockets and research and development, instead of setting up the promised vertical farms.
Further troubles for Griffin included failing to file a tax return for 2017, which he was required to do given his income from Second Story Farming. It didn’t stop there; he reportedly tried to hide his tracks by withdrawing cash for personal expenses directly from company accounts, transferring funds to his wife, and using various methods to conceal the true state of his finances.
Griffin is now awaiting his sentencing on October 22, with the possibility of facing up to 20 years in prison for each wire fraud charge, and an additional five years for tax evasion. The case brought to light by IRS Criminal Investigation, the FBI, and the United States Postal Inspection Service has been marked by the diligent work of Assistant U.S. Attorney Francis Weber and Trial Attorney Catriona Coppler from the Department of Justice's Tax Division, signaling a concerted effort to clamp down on financial fraud and evasion.
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