- Christopher Paxos passed away in 2021.
- The company he ran accused him of stealing millions of dollars.
- Paxos’ estate agreed to repay $2.6 million. There is still more money owed, the complaint alleges.
Jackson Twp. – Christopher Paxos is not the kind of person who can defend himself against what is being said about him these days—the local businessman died two years ago at the age of 49.
His obituary said he was an award-winning entrepreneur, a devoted family member, friend, and an all-around good person.
“One of the things Chris wanted to do was help make the world a better place and change people’s lives,” the paper said.
Some people say different things when they die.
Paxos has been called a liar, a thief, and an embezzler. He is accused of stealing and defrauding the companies he led and their investors out of more than $8.6 million.
And it was only after Mr. Paxos’ death and in his absence that the depth of his financial cover-ups became clear, say those seeking the money back.
Portions of this story are interspersed throughout thousands of pages of post-mortem civil action documents filed in Stark and Summit County Common Pleas Courts and Stark County Probate Court.
None of the lawyers involved responded to requests for comment on the matter.
But court records provide details about ongoing efforts. They also have access to Paxos’ still-locked MacBook Pros and iPads that may contain clues.
Branhaven, Sidera, and the Missing Millions
Paxos died suddenly on Oct. 13, 2021, inside his $1 million home northwest of Blythewood Circle.
He graduated from GlenOak High School, earned a degree in polymer science from the University of Akron, and did graduate work at the Massachusetts Institute of Technology, according to his obituary.
Paxos founded his first company at the age of 22. He received the Ernst & Young Entrepreneur of the Year Award. The father of five went on to found and run a number of businesses.
Two of the companies form the basis of a complex layer of financial transactions, allegedly used to improperly funnel millions of dollars into Paxos’ pockets.
One of those companies is Branhaven. It is a limited liability company in the name of his longtime girlfriend. Another is Life in Cuyahoga Falls.His science company, Scidera Inc., created and developed products for livestock and other animals.
The two businesses were intertwined, according to court filings. Paxos ran Branhaven, but he was also the CEO of Sidera. He was also a member of his three-member board of directors.
Branhaven’s purpose is said to have been created to preserve, maintain, and defend patents owned by Sidera.
“In the years leading up to his death, Paxos abused his position…” the Sidera court complaint states. “Paxos embezzled millions of dollars from Sidera and funneled the funds to himself in a myriad of ways without the knowledge or approval of Sidera’s remaining directors, officers, and shareholders. Sidera now has access to that money. I am filing this lawsuit to get my money back.”
Among the allegations in the court record are:
- In 2021, Paxos transferred $3.1 million of his $4 million settlement with Sidera to Branhaven (a windfall he didn’t tell anyone about). A few days later, he transferred $2.6 million from Branhaven to his personal checking account.
- From 2013 to 2020, Paxos and Branhaven billed Sidera for a total of $4.8 million in monthly reimbursements for the salaries of Branhaven employees. However, that money was also deposited into her personal Paxos account, and the employee’s salary was actually paid from a separate line.
- Paxos paid himself $1 million in bonuses from Branhaven, but arranged for the bonuses to be funded by Sidera.
A lawsuit filed by Sidera against the Paxos estate in Stark County Common Pleas Court in 2022 concluded in late 2023. Judge Christine Farmer entered judgment against Paxos’ estate, and the two sides reached a settlement agreement in the case.
Stark County Probate Judge Dixie Park approved the agreement in December. Terms require the Paxos Foundation to pay Sidera $2.6 million. The estate does not have enough money to cover its debts, but Sidera continues to search for the missing money.
Additionally, information stored on the MacBook Pro and iPad used by Paxos could provide information needed to locate other financial accounts he may have opened. Alternatively, perhaps a contract signed between Paxos, Branhaven, and Sidera could come to light, which could partially justify Paxos’ allegations of wrongdoing.
That is, can someone access and peek into your device while it remains password protected?
Locked Electronics, Patents, and Upcoming Court Cases
Although the Sidera and Paxos estates have been reconciled, there are still many unresolved issues.
Sidera has a 2022 lawsuit against Branhaven pending before Summit County Common Pleas Court Judge Alison McCarty. A trial is scheduled for May 13th.
In this case, Sidera alleged that Branhaven and Paxos’ girlfriend failed to turn over patents owned by Sidera after Paxos’ death.
Sidera sued for breach of contract, breach of fiduciary duty, conversion, unjust enrichment, and a number of other issues. According to the lawsuit, the amount of damages will be determined in court.
In August 2022, McCarty appointed Mark Dottore, a special investigator (not a party to the case), to investigate the contents of Paxos’ iPhone and MacBook Pro laptop.
The problem was he couldn’t open them.
So he turned to an IT expert for help. It wasn’t an easy job. Some refused help. According to Dottore’s report, they were concerned that firewalls and programs on certain devices could delete data.
In a Nov. 29 status report to the court, Dottore described how he and others used multiple court orders and public records to encourage Apple to help him unlock devices. Detailed information on whether the
“Every time our team contacted Apple, their red tape and arbitrary requirements caused significant delays,” he wrote.
In the process, Dottore noted that his team discovered Apple Cash accounts tied to Apple IDs in Paxos.
“Finally, we are currently awaiting response on Apple’s ongoing efforts to close the cash account,” Dottore wrote. “Once that step is complete, you can work with Apple engineers to move forward.”
Contact Tim at 330-580-8333 ortim.botos@cantonrep.com. About X: @tbotosREP
