A Farmingdale man faces five to 10 years in prison and must pay 42 victims approximately $880,000 in restitution after pleading guilty to grand larceny in a scheme targeting small business owners in need of loans, Suffolk District Attorney Timothy Sini said Wednesday.
Demetrios Boudourakis, 46, also known as Jimmy, was arrested June 11, 2019, as part of an investigation into what Sini described as an advance fee loan fraud scheme operated out of an office on Broadhollow Road in Melville and later from a storefront on Merrick Road in Seaford.
“This was a criminal enterprise that preyed upon small business owners from across the country, from as far away as Washington, Colorado and Texas to right here in Suffolk County,” Sini said in a news release. “This was a complex, far-reaching scheme, but thanks to our prosecutors and investigators, justice has been served for the victims in this case.”
Boudourakis was sentenced Friday by Suffolk County Court Judge Stephen Braslow.
He pleaded guilty June 12 to felony second-degree grand larceny, according to the release.
A spokeswoman for Sini identified Boudourakis’ lawyer as Terrence Buckley. Buckley could not immediately be reached for comment Wednesday.
From 2016 to early 2018, authorities said, Boudourakis and his employees offered loans to small businesses in exchange for advance fees. They collected the fees but cut off contact without providing the loans, the release said. The operation generated $2 million in illicit proceeds.
Prosecutors said the operation used a variety of shell companies and seven business names including Federal Business Lenders and Blackrock Inc., a name recalling that of BlackRock, the money-management giant.
Operation employees typically cold-called victims and used high-pressure sales tactics to sell the fraudulent loans, according to the release.
The investigation used court-authorized eavesdropping, audits of financial records and physical and electronic surveillance, the release said. Eleven agencies participated, including the Federal Bureau of Investigation, federal and state tax agencies and local police.