A California man has been sentenced to jail for a virtually decade-long financial institution fraud scheme that defrauded seven monetary establishments of almost $39 million.
Northridge resident Gary Topolewski submitted false industrial mortgage functions claiming funds would purchase industrial earth-moving gear and supply working capital for his firms, says the U.S. Division of Justice (DOJ).
As an alternative, the 64-year-old used the cash to buy properties, whereas laundering funds and making “Ponzi-like” funds to maintain the scheme utilizing new loans to repay previous ones.
Aliases and stolen identities helped masks the fraud as Topolewki moved capital by means of Topolewski America Inc., Morrison Knudsen Companies Inc. and Metallic Denims Inc.
Says the DOJ,
“Topolewski falsely represented within the mortgage functions that the loans have been for the acquisition of enormous, industrial earth-moving building gear, and for enterprise working capital functions.
In actuality, Topolewski and his firms didn’t use the proceeds as represented and as a substitute diverted, laundered, and misappropriated the proceeds for different functions, together with for the acquisition of properties and to make Ponzi-like funds to monetary lenders to perpetuate the scheme.”
In December 2025, Topolewski pleaded responsible to 1 depend of financial institution fraud.
On July seventh, 2026, a courtroom sentenced him to 78 months in jail, three years of supervised launch, over $19.4 million in restitution, and $21.8 million in forfeiture.
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