California Man Admits To Orchestrating ‘Ponzi-Like’ Scheme, Draining $39,000,000 From Financial Institutions

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California Man Admits To Orchestrating ‘Ponzi-Like’ Scheme, Draining ,000,000 From Financial Institutions — chase hike fee bank.jpg

California Man Sentenced to Prison for $39M Bank Fraud Scheme

A California man has been sentenced to prison for a nearly decade-long bank fraud scheme that defrauded seven financial institutions of nearly $39 million. Northridge resident Gary Topolewski submitted false commercial loan applications claiming funds would buy industrial earth-moving equipment and provide working capital for his companies, says the U.S. Department of Justice (DOJ).

Instead, the 64-year-old used the money to purchase properties, while laundering funds and making “Ponzi-like” payments to sustain the scheme using new loans to repay old ones. Aliases and stolen identities helped mask the fraud as Topolewki moved capital through Topolewski America Inc., Morrison Knudsen Services Inc. and Metal Jeans Inc.

The DOJ stated, “Topolewski falsely represented in the loan applications that the loans were for the purchase of large, industrial earth-moving construction equipment, and for business working capital purposes. In reality, Topolewski and his companies did not use the proceeds as represented and instead diverted, laundered, and misappropriated the proceeds for other purposes, including for the purchase of properties and to make Ponzi-like payments to financial lenders to perpetuate the scheme.”

In December 2025, Topolewski pleaded guilty to one count of bank fraud. On July 7th, 2026, a court sentenced him to 78 months in prison, three years of supervised release, over $19.4 million in restitution, and $21.8 million in forfeiture.

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