Issue link: https://nebusinessmedia.uberflip.com/i/746745
wbjournal.com | November 7, 2016 | Worcester Business Journal 5 B R I E F S Telexfree president pleads guilty to $3B pyramid scheme The president of Telexfree, Inc., a pyr- amid scheme that was disguised as a Marlborough internet telecom company, pleaded guilty in U.S. District Court in Worcester last month and forfeited $140 million, according to the Office of United States Attorney Carmen Ortiz. James Merrill, 55, of Ashland, pleaded guilty to one count of wire fraud con- spiracy and eight counts of wire fraud. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Feb. 2. The guilty plea stems from a pyramid scheme that resulted in $3 billion taken from investors in more than 240 coun- tries, according to Special Agent in Charge Matthew Etre of Homeland Security Investigations Boston. There were more than 1 million peo- ple worldwide who signed up for this service, including 20,000 people in Worcester. In December 2013, Merrill wired himself and two co-conspirators a total of $10 million from TelexFree accounts. According to the terms of the plea agreement, Merrill will be sentenced to no more than 10 years in prison. Merrill also agreed to forfeit approximately $140 million, numerous real estate properties, luxury vehicles and boats. Providence and Worcester Railroad sold for $126M Providence and Worcester Railroad Co. has been purchased by Genesee & Wyoming Inc. for approximately $126 million, the Worcester company's new owners announced on Nov. 2. Darien, Conn.-based G&W will pay shareholders $25 per share of common stock, for a total of roughly $126 million. Although the sale has gone through, following the approval by P&W share- holders last week, the U.S. Surface Transportation Board (STB) must still approve G&W's control of P&W, which is anticipated to occur in the fourth quarter of 2016, according to G&W. P&W, which operates in Massachusetts, Rhode Island, Connecticut and New York on 163 miles of owned track, has 140 employees and 32 locomotives handling about 43,000 carloads and intermodal units annually. Continued on Page 7 HOST YOUR HASSLE-FREE PARTY WITH AUSTIN LIQUORS DELIVERY VIA DRIZLY Order through the Drizly app or visit www.drizly.com T H E T I C K E R 108% The year-over-year increase in net income for Natick's Cognex Corporation in its third quarter report. This is the best quarter in the company's 35-year history with $54 million in net income. Source: Cognex Corporation The total project backlog for Framingham energy firm Ameresco. $1.5M Source: MassEcon Associated Industries of Massachusetts' Business Confidence Index score for October. It was the second straight month of improved confidence. 56.2 Source: State House News Service Amount in losses Westborough wearable technology maker Kopin Corp. reported for the third quarter. -$7.8M Source: Kopin Corp.