California Man Sentenced to More Than Six Years for $39 Million Bank Fraud and Ponzi-Like Loan Scheme

California — A California businessman has been sentenced to 78 months in federal prison for orchestrating a nearly decade-long bank fraud scheme that defrauded multiple financial institutions of approximately $39 million through fraudulent commercial loan applications.

According to the U.S. Department of Justice, Gary Topolewski, 64, of Northridge, California, was also sentenced to three years of supervised release. In addition to his prison term, a federal judge ordered him to pay more than $19.4 million in restitution and forfeit approximately $21.8 million.

Federal prosecutors said Topolewski carried out the scheme over nearly 10 years by submitting false commercial loan applications through companies he claimed to operate, including Topolewski America Inc., Morrison Knudsen Services Inc., and Metal Jeans Inc. The applications sought financing purportedly for the purchase of large industrial earth-moving construction equipment and business operating capital.

Investigators determined those representations were false.

Instead of using the money for legitimate business purposes, prosecutors said Topolewski diverted, laundered, and misappropriated the loan proceeds. The funds were allegedly used to purchase real estate and make Ponzi-like payments to lenders by using proceeds from newer loans to repay older debts, allowing the fraud to continue.

Authorities also said Topolewski used multiple aliases during the scheme, including a stolen identity belonging to another victim, and adopted company names that closely resembled legitimate businesses in the construction and heavy equipment industries to lend credibility to the fraudulent loan applications.

The Justice Department said Topolewski’s companies received more than $39 million in fraudulently obtained loan proceeds, while he unsuccessfully attempted to secure millions more through additional applications.

Topolewski pleaded guilty in December 2025 to one count of bank fraud.

The sentencing was announced by Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Sigal Chattah for the District of Nevada, and FBI Las Vegas Field Office Special Agent in Charge Christopher Delzotto.

The case was investigated by the FBI. It was prosecuted by Trial Attorney Sara Hallmark of the Justice Department’s Criminal Division Fraud Section and Assistant U.S. Attorney Tony Lopez for the District of Nevada.