A New York business owner has been charged with running a bank fraud scheme that defrauded dozens of customers out of more than $1 million.
Lancaster, New York resident Jason Knobloch was charged with bank fraud after allegedly using deceptive practices to steal money from 32 victims, says the U.S. Attorney’s Office for the Western District of New York.
According to the lawsuit, the scheme began in February 2021 and involved the fake sale of forklifts and similar equipment through companies controlled by Knobloch.
Victims allegedly found the companies while searching online for equipment, then either contacted the businesses directly or were contacted by employees working for Knobloch’s companies.
After negotiating a price, victims were allegedly given instructions on how to pay for the equipment.
But prosecutors claim the equipment was usually never delivered after payment was made.
In rare cases where customers did receive equipment, authorities allege the machinery was worth less than what they had purchased.
When victims followed up about their orders, Knobloch’s businesses allegedly gave them a series of excuses for the delays.
Eventually, prosecutors allege the companies stopped answering emails and phone calls altogether.
In cases where equipment was delivered, authorities allege the serial numbers did not match what customers had ordered, and the machines had far more hours of use than advertised.
Some victims received partial or full refunds, but prosecutors claim that typically happened only after the companies were confronted and warned that legal action was coming.
Investigators also allege Knobloch attempted to take more money from customers long after their original equipment purchases.
In one example, the owner of Plumb Level and Square sent Lifts 4 Less a $59,900 check in December 2021. The check was cashed, but prosecutors allege the equipment was never delivered. About eight months later, in August 2022, someone allegedly tried to cash another check made out to Knobloch using the owner’s bank account information.
Authorities allege another $59,900 deposit attempt using Plumb Level and Square’s banking information was made the following month.
Investigators also identified several similar attempts to deposit checks using customer bank account information without permission, including checks totaling $27,000, $22,600 and $28,400. Prosecutors say the affected financial institutions included Bank of America, Citizens Bank and Good Neighbors Federal Credit Union.
If convicted, Knobloch faces a maximum penalty of 30 years in prison and a $1 million fine.
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