(WNY News Now) – A Buffalo man will spend more than seven years in federal prison after using stolen identities to obtain millions of dollars in fraudulent financing from lenders across the country.

ROCHESTER, N.Y. — A 54-year-old Buffalo man has been sentenced to 87 months in federal prison for orchestrating a multi-million-dollar fraud scheme that used the personal information of dozens of small-business customers without their knowledge or authorization.

Paul Paredes, who was convicted of wire fraud and aggravated identity theft, was sentenced by Chief U.S. District Judge Elizabeth A. Wolford. He was also ordered to pay $8,754,446.64 in restitution to 57 victims, according to U.S. Attorney Michael DiGiacomo.

Federal prosecutors said Paredes owned J&E Business Consulting LLC, a company that provided services to businesses, including connecting smaller retailers with credit card processing companies.

Through those business relationships, Paredes obtained sensitive customer information, including Social Security numbers, driver’s license details, email addresses and banking information.

Between April 2019 and August 2023, prosecutors said Paredes used that information to submit hundreds of fraudulent financing applications to dozens of lenders.

The applications were submitted under the identities of business customers without their knowledge, consent or authorization. The funds were directed into bank accounts controlled by Paredes.

Investigators determined that Paredes used at least 63 individuals’ identities to defraud at least 23 lenders. The scheme involved at least 12 bank accounts and generated losses of at least $3.5 million.

According to prosecutors, Paredes used the money for personal expenses, business operating costs and employee salaries. He also made payments toward fraudulent loans to avoid raising suspicion and continue obtaining additional financing.

When some victims received communications from lenders about financing agreements they had not authorized, Paredes allegedly misled them and told them he would handle the matter.

The fraudulent applications were submitted from Rochester to lenders across the United States, including companies in New Jersey, Virginia, Illinois, Texas, Florida, Pennsylvania and several other states.

The investigation involved the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division and the New York State Department of Financial Services Criminal Investigation Bureau. Assistant U.S. Attorney Katelyn M. Hartford prosecuted the case.