A California man has been sentenced to nearly 10 years in prison for a bank fraud scheme that defrauded seven financial institutions of nearly $39 million.
Northridge resident Gary Topolewski issued false business loans saying the money could buy industrial equipment and provide operating income for his company, he says US Department of Justice (DOJ).
Instead, the 64-year-old used the money to buy property, while spending money and making “Ponzi-like” payments to advance the scheme by using new loans to repay old ones.
The stolen names and identities helped cover up the fraud as Topolewski moved headquarters through Topolewski America Inc., Morrison Knudsen Services Inc. and Metal Jeans Inc.
says the DOJ,
“Topolewski falsely represented in the loan applications that the loans were for the purchase of large equipment for the construction of factories, and for business purposes.
In reality, Mr. Topolewski and his companies did not use the money as they represented and instead misappropriated, squandered, and wasted the money on other things, including buying properties and making Ponzi payments to lenders to keep the scheme going. “
In December 2025, Topolewski pleaded guilty to one count of bank fraud.
On July 7, 2026, the court sentenced him to 78 months in prison, three years of supervised release, restitution of more than $19.4 million, and $21.8 million in forfeiture.
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