BUFFALO, N.Y. (WKBW) — U.S. Attorney James P. Kennedy announced a Salamanca man pleaded guilty to conspiracy to commit bank fraud and money laundering Monday.
According to the U.S. attorney's office 35-year-old Sergiy Bezrukov opened two businesses in Western New York to operate fraudulent debt restructuring businesses.
Bezrukov and others sent letters to small businesses under fictitious names offering to assist in restructuring high interest loans.
Officials say once the small businesses agreed to hire Bezkrukov and his company, money would be taken from the bank accounts of the businesses but no loans were paid on their behalf.
According to the U.S. attorney's office the small businesses would receive no response when they attempted to contact Bezrukov and the company.
During the investigation of Bezrukov's Salamanca operation, officers seized approximately $393,000 in cash and a check for $729,000.
Officials say Bezrukov's business operation defrauded approximately 200 victims out of more than $1.2 million.
Bezrukov is scheduled to be sentenced on July 24th.