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Advance Fee Scammer Sentenced to 2 Years
Brooklyn man Octavio Lombardo, a/k/a “Otto Lombardo,” was sentenced to 2 years in prison for wire fraud in connection with an advance fee scheme that defrauded small business owners of over $1 million, Grimy Times has learned.
Lombardo, 52, lied to dozens of small business owners, claiming to have exclusive relationships with small community banks across the United States, when in fact he had no such expertise or relationships.
As part of the scheme, Lombardo induced over 30 business owners to pay an upfront fee of $25,000, which he used to fund his own personal expenses, including rental payments, club dues, food, and other personal items.
“Octavio Lombardo lied to dozens of small business owners who looked to him for help in obtaining financing,” said U.S. Attorney Preet Bharara. “Lombardo purported to have expertise and relationships with community banks that would facilitate investment loans at favorable terms. But in fact, he had no such expertise or relationships, just the gumption to steal his clients’ money.”
Lombardo pleaded guilty on September 21, 2015, and was sentenced by United States District Judge Jesse M. Furman.
According to the complaint, Lombardo engaged in the fraudulent scheme from at least 2007 to 2013, promising business owners that he could obtain interest-only loans in amounts ranging from $1 million to $75 million by consolidating the lending power of several small community banks into a trust.
However, none of the businesses at issue received a loan through Lombardo during this period, and he spent the majority of the due diligence payments on his own personal expenses, including over $300,000 on rental payments for his residence in Brooklyn.
The scheme left dozens of small business owners out of pocket, with Lombardo netting over $1 million in upfront fees.
Lombardo’s sentence marks the latest in a series of high-profile convictions for white-collar crime in New York.
Key Facts
- State: New York
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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