Paul Paredes, 52, Rochester, New York, United States previously lived in Seattle, Washington, USA. Since 2013, he has owned J&E Business Consulting LLC, which provides merchant services to client businesses.
J&E acted as a broker between credit card processing companies and small retail businesses. The small businesses provided J&E with their financial information, including the owner’s email, driver’s license, social security number and bank account information.
Between May 2022 and November 2022, Paredes allegedly fraudulently submitted around 42 loan applications using the identities of around 31 individuals to Channel Partners Capital LLC, a financial lending company in New York City, New York, USA. As a result, the financial lending company paid around $2,000,000 to J&E.
The money was used for loan repayments to Channel Partners Capital and other loan companies and personal expenses such as travel, vehicles and credit cards. Only 4% of victim funds were used for expenses related to business.
In January 2023, the Federal Bureau of Investigation received information that Channel Partners Capital made numerous loans to J&E customers. Operating as Citizens Asset in San Diego, California, SA, LP Capital Partners Inc. acted as a broker by submitting the loan applications to Channel Partners Capital.
Represented by Rochester attorney Joseph M. Shur, Channel Partners Capital filed a 21-page complaint against Paredes and J&E in Supreme Court in Rochester on October 13, 2023. On October 16, 2023, his arrest was announced.
Paredes was arrested and charged by criminal complaint with wire fraud, money laundering and aggravated identity theft. He made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen.
Currently, Paredes is being held in custody. On October 18, 2023, he will attend a detention hearing.
CONAN Daily 