A Buffalo man has pleaded guilty to defrauding lending companies out of millions of dollars using dozens of stolen identities.
Paul Paredes, 53, of Buffalo, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to wire fraud and aggravated identity theft, which carry a mandatory minimum penalty of two years in prison, a maximum of 20 years, and a $250,000 fine.
Paredes has owned J&E Business Consulting LLC, which provides services to client businesses, including acting as a broker between the credit card processing companies and smaller retail businesses. Small businesses provide J&E with their financial information, such as the owner’s identifying information, including driver’s license, social security number, and email, as well as bank account information.
Between April 2019, and August 2023, Paredes submitted hundreds of fraudulent financing applications to dozens of lenders under the identities of his business customers (victims), for goods and services allegedly provided by Paredes, with the funds payable to bank accounts controlled by Paredes.
Paredes used the identity of at least 63 individuals to defraud at least 23 victim lenders, utilizing at least 12 different bank accounts and moving the money he obtained from the scheme throughout different accounts. Paredes submitted false loan applications from Rochester, NY, to the out-of-state lenders located throughout the country, including in New Jersey, Virginia, Illinois, Texas, North Carolina, Florida, Washington, Pennsylvania, Iowa, Colorado, and Minnesota.
The total loss amount is at least $3,500,000. Paredes’ guilty plea is the result of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service, and the New York State Department of Financial Services-Criminal Investigation Bureau.
Sentencing is scheduled for April 29, 2025, at 2:30 p.m. before Judge Wolford. Paredes faces a mandatory minimum penalty of two years in prison, a maximum of 20 years, and a $250,000 fine.
Key Facts
- State: New York
- Category: White Collar Crime, Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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