A Lancaster man faces up to 30 years in prison after bilking more than 30 people out of more than a million dollars in a scheme involving the sale of forklifts.
Jason Knobloch, 56, of Lancaster, was arrested and charged by criminal complaint with bank fraud, which carries a maximum penalty of 30 years in prison and a $1,000,000 fine.
According to the criminal complaint, since February 2021, Knobloch and others have been carrying out a scheme involving the fraudulent sales of forklifts and other similar equipment, claiming to sell these items through various companies that they controlled. The companies included KJJK Equipment Sales d/b/a Kelly Lift Equipment and Clover Lift Equipment d/b/a Lifts 4 Less. Victims conducted online searches for equipment and would either contact or be contacted by employees of Knobloch’s companies. Cost negotiations were conducted and once an agreement was reached, victims were provided with payment instructions. However, after ordering and paying for the equipment, it was either never delivered or, in rare instances, equipment of lesser value was sent instead of what was actually ordered.
In the rare instance equipment was delivered, serial numbers for the delivered equipment did not match the serial numbers for the ordered equipment and the hours on the delivered equipment were much higher than what was advertised. Partial and full refunds occurred occasionally, but typically only after the company was confronted and advised that legal action was forthcoming.
In total, Knobloch and his co-conspirators have defrauded approximately 32 victims, resulting in more than a million dollars in fraud loss. The investigation also identified additional fraud attempts in which Knobloch sought to deposit checks utilizing customers’ bank account information without the customers’ knowledge and consent and long after the victims first attempted to purchase equipment.
Knobloch was ordered released on home confinement following a detention hearing Thursday before U.S. Magistrate Judge Michael J. Roemer.
The case is being prosecuted by Assistant U.S. Attorney Douglas A. C. Penrose. The complaint is the culmination of an investigation by Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Anthony Patrone and the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Harry T. Chavis, Jr.