A Brooklyn man has been sentenced to two years in prison for his role in a $1 million advance fee scheme, authorities announced today.
OCTAVIO LOMBARDO, a/k/a “Otto Lombardo,” was sentenced today in Manhattan federal court to two years in prison for wire fraud stemming from his scheme to defraud small business owners.
According to authorities, LOMBARDO lied to small business owners by claiming to have the ability and expertise to structure investment loans for their businesses through LOMBARDO’s exclusive relationships with small community banks across the United States.
However, in fact, he did not have the ability to obtain such financing and used the vast majority of the money he received from the business owners – over $1 million in total – on his own personal expenses, including rental payments, club dues, food, and other personal items.
LOMBARDO pled guilty on September 21, 2015, before United States District Judge Jesse M. Furman, who also imposed today’s sentence.
“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.
“Today he has been held to account for his crime,” Bharara added.
LOMBARDO’s scheme involved over 30 business owners who paid an upfront fee that was purportedly to pay for expenses incurred during the due diligence process prior to the loan’s closing.
He spent the vast majority of the due diligence payments on his own personal expenses, including rental payments, club dues, food, and other personal items.
The exact amount of money spent on his personal expenses was not specified in the report.
The defendant’s sentence brings to a close a scheme that lasted from at least in or about 2007 through in or about 2013.
Mandatory Facts:
Defendant: OCTAVIO LOMBARDO, a/k/a “Otto Lombardo”
Criminal Charges: Wire fraud
City and State: New York
Date: September 21, 2015
Sentence: 2 years in prison
Dollar Amount: Over $1 million
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Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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