A Lawrence man was sentenced to seven years in prison Friday for defrauding customers of $5 million through his Internet company, officials said.
Daniel Greenberg, 41, who operated his now-defunct Hempstead-based company, Classic Closeouts, was also ordered to serve three years of supervised release and a pay a total of $2.5 million in forfeiture and restitution by U.S. District Judge Arthur Spatt at the federal court in Central Islip, officials said.
Classic Closeouts sold discounted clothing and personal items.
From June 2008 to April 2009, Greenberg charged the credit cards of customers or debited their bank accounts in 60,000 instances without their knowledge for items they had not authorized, U.S. Attorney Loretta Lynch said in a statement.
Customers who complained were falsely told they had joined a "frequent shopper club" that supposedly required the additional charges, Lynch said.
Greenberg was convicted in January on 13 counts of wire fraud and money laundering.
Greenberg's attorney, Eric Creizman of Manhattan, said he believes the judge recognized that the crimes were aberrant behavior for his client.