Buffalo Business Consultant Sentenced to 87 Months for Using Clients' Identities to Get Fraudulent Loans

Published Nov. 6, 2026. Case status is current as of that date.

Small business owners routinely hand a broker their driver's license, Social Security number and bank details to line up financing or card processing. Federal prosecutors in western New York say one Buffalo consultant used exactly that information against his own clients. On Nov. 5, 2026, the U.S. Attorney's Office for the Western District of New York announced that Paul Paredes, 54, of Buffalo, had been sentenced to 87 months in prison [1].

Status: Paredes has been convicted and sentenced. The release says he "was convicted of wire fraud and aggravated identity theft"; it does not say whether that followed a plea or a trial. Chief U.S. District Judge Elizabeth A. Wolford imposed the sentence and ordered restitution of $8,754,446.64 to 57 victims [1].

How the scheme worked

According to the U.S. Attorney's Office, based on the case record [1]:

1. The business. Since 2013, Paredes owned J&E Business Consulting LLC, which provided services to client businesses, including acting as a broker between credit card processing companies and smaller retail businesses.
2. The data. Clients gave J&E their financial information, including the owner's identifying information, driver's license, Social Security number, email and bank account details.
3. The applications. Between April 2019 and August 2023, Paredes submitted hundreds of fraudulent financing applications to dozens of lenders in his business customers' names, for goods and services he allegedly provided, with the funds payable to accounts he controlled. The agreements were prepared "without their knowledge, consent, or authorization."
4. The money. He used the funds for personal expenses, salaries and operating expenses, and to make payments to the lenders to avoid detection, which let him keep taking new financing.
5. The cover story. When clients received communications from lenders about the agreements, he misled them about the purpose "and told them he would handle it."

The release says Paredes used the identities of at least 63 individuals to defraud at least 23 lenders, using at least 12 bank accounts, with lenders in New Jersey, Virginia, Illinois, Texas, North Carolina, Florida, Washington, Pennsylvania, Iowa, Colorado and Minnesota. It puts the total loss at "at least $3,500,000"; the restitution figure of $8,754,446.64 is stated separately, and the release does not explain the difference. No victims are named here.

The person convicted and the case

Paul Paredes, 54, of Buffalo, N.Y. Convicted of wire fraud and aggravated identity theft; sentenced to 87 months in prison. The release gives no docket number or supervised release terms [1]. Assistant U.S. Attorney Katelyn M. Hartford prosecuted. The sentencing followed an investigation by the FBI, IRS Criminal Investigation and the New York State Department of Financial Services Criminal Investigation Bureau [1].

Red flags when a broker holds your identity data

These are general warning signs, not claims about any client in this case.

• A broker who keeps your full Social Security number, license and bank login longer than needed.
• Lender calls, letters or credit inquiries about financing you never requested.
• A broker who says "I'll handle it" when you ask about unfamiliar lender contact.
• Statements showing loan or lease payments you did not authorize.
• A broker who is slow or unwilling to show you copies of applications submitted in your name.

What to do

• Ask what a broker will submit in your name, and ask for copies of every application.
• Check your business and personal credit reports regularly and consider a freeze.
• If you find unauthorized financing, contact the lender and law enforcement, and file at IdentityTheft.gov.
• Report fraud at ReportFraud.ftc.gov, or to the FBI at ic3.gov.

Case status (as of Nov. 6, 2026)

Defendant	Court	Status	Source
Paul Paredes, 54, Buffalo, N.Y. (J&E Business Consulting LLC)	U.S. District Court, W.D.N.Y. (Chief Judge Elizabeth A. Wolford); docket not stated	Convicted of wire fraud and aggravated identity theft; sentenced to 87 months; restitution $8,754,446.64 to 57 victims	[1]

Statuses can change, including through appeal.

Sources

1. U.S. Attorney's Office, Western District of New York, "Rochester man going to prison for defrauding millions of dollars from lending companies and small businesses using dozens of stolen ID’s," Nov. 5, 2026. https://www.justice.gov/usao-wdny/pr/rochester-man-going-prison-defrauding-millions-dollars-lending-companies-and-small

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