A New York business owner has been accused of running a bank fraud scheme to defraud dozens of customers out of more than $1 million.
LANCASTER, N.Y. – Lancaster resident Jason Knoblauch has been charged with bank fraud after using deceptive practices to steal money from 32 victims. He says US Attorney’s Office for the Western District of New York.
According to the lawsuit, the scheme began in February 2021 and involved the counterfeit sale of forklifts and similar equipment through companies controlled by Knobloch.
The victims allegedly found the companies while searching online for equipment, then contacted the companies directly or were contacted by employees working at Knobloch’s companies.
After negotiating a price, the victims allegedly received instructions on how to pay for the equipment.
But plaintiffs claim the equipment was never delivered after payment was made.
In rare cases, where customers received equipment, authorities claim the value of the machines was less than what they purchased.
When the victims followed through with their requests, Knobloch’s companies allegedly gave them a series of excuses for the delay.
Eventually, plaintiffs allege, the companies stopped responding to emails and phone calls altogether.
In cases where equipment was delivered, authorities allege that serial numbers did not match what customers ordered, and that the devices had much longer usage hours than advertised.
Some victims received partial or full refunds, but prosecutors claim that usually happened only after the companies were confronted and warned of legal action.
Investigators also allege that Knobloch attempted to take more money from customers long after the original equipment had been purchased.
In one example, the owner of Plumb Level and Square sent Lifts 4 Less a check for $59,900 in December 2021. The check was cashed, but plaintiffs allege the equipment was never delivered. About eight months later, in August 2022, someone allegedly tried to cash another check that had been transferred to Knobloch using the owner’s bank account information.
Authorities allege another attempted deposit of $59,900 using Plumb Level and Square’s banking information took place the following month.
Investigators also identified several similar attempts to deposit checks using customer bank account information without authorization, including checks totaling $27,000, $22,600, and $28,400. Prosecutors say the financial institutions affected include 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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