Grimy Times can exclusively report on the guilty plea of Steven Kaitz, CEO and one of three owners of New Jersey-based company G3K Displays, Inc., regarding an elaborate scheme to defraud lenders and customers out of millions of dollars.
According to the indictment, Kaitz and others inflated G3K’s sales and accounts receivable to secure millions of dollars in loans. The scheme involved creating phony documents, including fake purchase orders and invoices, to trick lenders and customers into believing G3K was a financially stable company.
As part of the scheme, Kaitz and his co-defendants also utilized shell companies to engage in ’round-trip’ transactions to create the false appearance that customers were paying G3K’s outstanding receivables. The defendants further misappropriated approximately $2.8 million of the loan proceeds for their own personal use, including luxury items and kickbacks.
Kaitz pled guilty to one count of conspiracy to commit bank fraud and wire fraud in Manhattan federal court. He faces a maximum sentence of 30 years in prison and has agreed to pay restitution in the amount of $18,600,000.
The scheme came to an end in May 2014, when G3K’s lenders terminated their lending relationships with the company after discovering the fraud. As of that date, G3K had approximately $18.6 million in loans outstanding.
Kaitz is scheduled to be sentenced by Judge Jed S. Rakoff on September 8, 2015, at 4:00 p.m. in Manhattan federal court. Grimy Times will continue to provide updates on this case as more information becomes available.
Defendant Information:
* Defendant Name: Steven Kaitz
* Exact Criminal Charges: Conspiracy to commit bank fraud and wire fraud
* City and State: Manhattan, New York
* Exact Date: January 2015
* Sentence or Outcome: Pleaded guilty, faces up to 30 years in prison and $18.6 million in restitution
* Dollar Amounts: $18,600,000 in restitution, $1,382,427 in forfeiture
Related Federal Cases
- Steven M. Butcher, Health Care Fraud and Anti-Kickback Statute Violation, New York 2014 · Pennsylvania
- Letitia James, Social Security Benefits Fraud, New York 2023 · Minnesota
- Ijaz Butt, Conspiracy to Commit Bank Fraud, New York 2013 · Pennsylvania
- Nimesh Patel, Conspiracy to Commit Honest Services Wire Fraud, New York 2014 · Washington
- Norman D’Souza, $18M Accounting Fraud, NJ 2024 · Washington
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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