Paul Paredes, Wire Fraud, Money Laundering, Aggravated Identity Theft, New York 2023
Rochester Man Arrested and Charged with Defrauding Lending CompanyRochester, NY - Paul Paredes, 52, of Rochester, NY, was arrested and charged with wire fraud, money laundering, and aggravated identity theft, announced U.S. Attorney Trini E. Ross.Paredes, the owner of J&E Business Consulting LLC, provided merchant services to client businesses, including acting as a broker between the credit card processing companies and smaller retail businesses. Small businesses provided J&E with their financial information, including bank account information.In January 2023, the FBI received information that a financial lending company, known as Victim 1, made numerous loans to customers of J&E. These loans were paid out to J&E's bank account for supposed equipment sold to victim businesses. However, only a few repayments were made on the loans, and subsequent investigation by Victim 1 determined that customers had never applied for nor agreed to any such loan, nor had they acquired or had any knowledge of the specified equipment.According to the complaint, between May and November 2022, Paredes fraudulently submitted approximately 42 loan applications using the identities of approximately 31 individuals to Victim 1 and, as a result, the victim paid approximately $2,000,000 to J&E. The money was used for loan repayments to Victim 1 and other loan companies, as well as personal expenses such as credit cards, travel, and vehicles. Just four percent of victim funds were utilized for business-related expenses.Paredes made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and was held pending a detention hearing on October 18, 2023. The charges carry a mandatory minimum penalty of two years in prison, a maximum of 20 years, and a $500,000 fine.Paul ParedesDefendant's Name: Paul ParedesCharges: Wire fraud, money laundering, aggravated identity theftCity and State: Rochester, NYDate: January 2023Sentence or Outcome: Held pending a detention hearing on October 18, 2023Dollar Amount: $2,000,000Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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