A New York business owner has been charged with bank fraud that defrauded dozens of customers out of more than $1 million.
Lancaster, New York resident Jason Knobloch has been charged with bank fraud after he used fraudulent methods to steal money from 32 victims. he says US Attorney’s Office for the Western District of New York.
According to the indictment, the scheme began in February 2021 with the sale of counterfeit forklifts and related equipment through companies controlled by Knobloch.
The victims allegedly found the companies while searching for equipment online, then contacted the businesses directly or were contacted by employees of Knobloch’s companies.
After negotiating the price, the victims were allegedly given instructions on how to pay for the equipment.
But prosecutors say the devices were often not delivered after payments were made.
In some cases when customers received the equipment, officials said the machine was inferior to what they had purchased.
After the victims complied with the orders, Knobloch’s businesses allegedly gave them several reasons to reduce the price.
After that, plaintiffs say the companies stopped responding to emails and phone calls.
When the equipment was delivered, officials say the model numbers did not match what customers ordered, and the machines had more hours than advertised.
Some victims have received partial or full refunds, but critics say this happens only after the companies have come forward and warned that lawsuits are coming.
Investigators say Knobloch tried to extort large sums of money from customers after they purchased their original equipment.
In one example, the owner of Plumb Level and Square sent a check for 4 Lifts for $59,900 in December 2021. The check was cashed, but plaintiffs say the equipment was never delivered. About eight months later, in August 2022, someone allegedly tried to cash another check to Knobloch using the owner’s bank account information.
Officials say another attempt at $59,900 using Plumb Level and Square’s bank details was made the following month.
Investigators also identified several similar attempts to deposit checks using unauthorized bank account information, including checks totaling $27,000, $22,600 and $28,400. Prosecutors say the financial institutions involved are Bank of America, Citizens Bank and Good Neighbors Federal Credit Union.
If convicted, Knobloch faces a maximum sentence of 30 years in prison and a $1 million fine.
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