FARMINGDALE, NY – A man from Long Island admitted he operated an advance loan program targeting small business owners. Authorities said there were more than 35 victims across the country.
Demetrios Boudourakis, aka “Jimmy”, 46, of Farmingdale, pleaded guilty on Friday to second-degree robbery, a felony. He is expected to be sentenced on September 4 by Suffolk County Court.
According to the plea deal, he is expected to be sentenced to five to 10 years in prison with restitution orders totaling around $ 1 million for the victims.
Suffolk County District Attorney Timothy D. Sini said it was a great outcome for the victims of the scam, many of whom were hard-working small business owners.
“The fact that Boudouakis now faces a significant prison sentence sends a clear message that we will not tolerate fraud or theft, and that we will hold criminal enterprises like this accountable,” he said. declared.
Authorities opened an investigation into Boudourakis and his associates in 2018, which revealed that they were running an advance loan program as early as October 2016.
They offered loans to their targets in exchange for advance fees, then collected the fees without providing the loans. After receiving the advance fee, they would cease all contact with the victims.
It was determined that the scheme had generated stolen goods in excess of $ 2 million.
The plot operated like a boiler room, usually reaching victims through cold calls and then using high-pressure sales tactics to sell them the fraudulent loans.
From 2016 to early 2018, Boudourakis operated the project from a boiler room located in Melville. In May 2018, Boudourakis left this location and re-established his illicit operation in a storefront located in Seaford under the name “Federal Business Lenders”.
He has also operated this program through shell companies and under other trade names including Federal Business Funding, JTT Funding, JTT Global Holdings, Inc., Acceleration Capital Group, Blackrock Funders, Inc. and Blackrock, Inc.
As a result of the investigation, Boudourakis was arrested on June 11, 2019.