A California man has been sentenced to six and a half years in federal prison after orchestrating a nearly decade-long bank fraud scheme that defrauded seven financial institutions out of approximately $39 million through fraudulent commercial loan applications.
Gary Topolewski, 64, of Northridge, California, was sentenced in the U.S. District Court for the District of Nevada to 78 months in prison followed by three years of supervised release. The court also ordered him to pay more than $19.4 million in restitution and imposed a forfeiture judgment of $21.8 million.
The sentence follows Topolewski’s guilty plea in December 2025 to one count of bank fraud after prosecutors accused him of using shell companies, stolen identities and Ponzi-style repayment tactics to obtain millions of dollars in fraudulent loans.
Nearly A Decade Of Fraudulent Loan Applications
According to the U.S. Department of Justice, Topolewski carried out the scheme over nearly 10 years by submitting false commercial loan applications on behalf of three companies:
- Topolewski America Inc.
- Morrison Knudsen Services Inc.
- Metal Jeans Inc.
Using those entities, prosecutors said he obtained more than $39 million in fraudulent loan proceeds while attempting to secure millions more from multiple financial institutions.
The loan applications claimed the financing would be used to purchase large industrial earth-moving construction equipment and provide working capital for legitimate business operations.
Federal investigators determined those representations were false.
Loan Proceeds Used For Properties And Ponzi-Style Payments
Rather than purchasing construction equipment, Topolewski diverted the money for other purposes, including buying real estate and making payments on existing loans.
According to prosecutors, newer fraudulently obtained loans were used to pay down balances owed to earlier lenders in an effort to keep the scheme operating.
The repayment structure resembled a Ponzi scheme, where incoming funds were used to satisfy existing obligations rather than support legitimate business activity.
Authorities also allege Topolewski laundered and misappropriated loan proceeds throughout the scheme.
Related
Fake Identities And Similar Company Names
Investigators said Topolewski took multiple steps to conceal the fraud.
He allegedly operated under several aliases, including the stolen identity of another individual, while also using company names that closely resembled established businesses in the construction and heavy equipment industries.
Those similarities were intended to create the appearance of legitimate commercial borrowers when applying for financing.
Case Summary
Details
Defendant
Gary Topolewski
Residence
Northridge, California
Fraud proceeds obtained
Approximately $39 million
Prison sentence
78 months
Restitution
More than $19.4 million
Forfeiture
$21.8 million
Federal Investigation
The investigation was conducted by the FBI.
The case was prosecuted jointly by Trial Attorney Sara Hallmark of the Department of Justice Criminal Division’s Fraud Section and Assistant U.S. Attorney Tony Lopez for the District of Nevada.
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 Special Agent in Charge Christopher Delzotto.
Why It Matters
Commercial lending fraud remains a major area of enforcement for federal authorities, particularly schemes involving falsified loan applications and misuse of borrowed funds.
Unlike consumer fraud, commercial loan fraud often targets multiple financial institutions simultaneously and can continue for years before being detected, especially when borrowers use newly obtained financing to keep existing loans current.
This case also illustrates how fraudsters may exploit seemingly legitimate corporate identities, false documentation and stolen identities to obtain large commercial loans while masking the true use of the proceeds.
With losses reaching tens of millions of dollars across multiple lenders, the case highlights the continuing focus by the Department of Justice and the FBI on prosecuting complex financial fraud schemes involving commercial credit and corporate lending.