A Bergen County man has been indicted for a Multimillion-Dollar Fraud Scheme that left victims with significant financial losses. Jeffrey Kahn, 55, of Ridgewood, New Jersey, was charged with six counts of wire fraud and one count of money laundering in connection with the scheme.
According to court documents, Kahn collected millions of dollars in fees from victims seeking funding for their commercial projects. However, instead of securing the promised financing, Kahn misappropriated a portion of the funds for his personal benefit. He also caused other victims to be paid back with the remaining funds.
The scheme, which took place from March 2018 through March 2020, involved Kahn promising victims that he had secured financing for their projects through an individual and a lender. However, in reality, Kahn never obtained any financing from the individual or the lender.
Kahn also made misrepresentations to certain victims regarding their purported successful financing deals with Kahn and/or the individual. He caused others to make similar misrepresentations to victims, further perpetuating the scheme.
As a result of the scheme, Kahn caused the victims to transfer more than $5 million in funds to accounts controlled by Kahn or provided to Kahn by the individual. Kahn misappropriated approximately $800,000 of those funds for his own personal benefit, and used an additional portion of those funds – approximately $447,000 – to pay back other victims of the scheme.
Kahn faces a maximum of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss from the offense, whichever is greater, for each wire fraud count. The count of money laundering carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.
U.S. Attorney Philip R. Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the indictment. The government is represented by Assistant U.S. Attorney Jennifer S. Kozar of the Economic Crimes Unit in Newark.
Related Federal Cases
- Jeffrey Phares, Cemetery Fraud, West Virginia, 2023 · Virginia
- Marc Henry Menard, Investment Fraud Scheme, Mineola NY, 2023 · Pennsylvania
- Alin Carabus, ATM Skimming Scheme, New Jersey 2024 · Pennsylvania
- Ricardo Reid, Mail and Wire Fraud Conspiracy, New Jersey 2024 · Virginia
- Michael Conway, Wire Fraud, New Jersey 2016 · Pennsylvania
Key Facts
- State: New Jersey
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
