A California man has been sentenced to prison for a nearly decade-long bank fraud that defrauded seven financial institutions out of nearly $39 million.
Northridge resident Gary Topolevsky submitted false business loan applications claiming the money would purchase industrial earth-moving equipment and provide working capital for his companies. He says US Department of Justice (DOJ).
Instead, the 64-year-old used the money to buy properties, while laundering money and making “Ponzi-like” payments to maintain the scheme by using new loans to repay old ones.
Aliases and stolen identities helped hide the fraud as Topolewki moved capital through Topolewski America Inc., Morrison Knudsen Services Inc., and Metal Jeans Inc.
The Ministry of Justice says,
“Topolevsky falsely stated in his loan applications that the loans were for the purchase of large industrial earth-moving construction equipment and for business working capital purposes.
In fact, Topolevsky and his companies did not use the proceeds as represented, and instead diverted, laundered, and embezzled the proceeds for other purposes, including purchasing real estate and making Ponzi-like payments to financial lenders to perpetuate the scheme.
In December 2025, Topolevsky pleaded guilty to one count of bank fraud.
On July 7, 2026, the court sentenced him to 78 months in prison, three years of supervised release, restitution of more than $19.4 million, and forfeiture of $21.8 million.
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