"The victims were misled with false promises and never received the equipment they paid for," said a law enforcement official involved in the case against Jason Knobloch, a business owner from Lancaster, New York. Knobloch faces serious allegations of orchestrating a fraudulent scheme that defrauded at least 32 customers out of over $1 million by selling forklifts and similar machinery that were either never delivered or misrepresented.
The U.S. Attorney’s Office for the Western District of New York revealed that the scam began in February 2021. Knobloch operated companies that listed equipment for sale online, attracting victims who either reached out directly or were contacted by employees of these businesses. Customers negotiated prices and were given payment instructions, but most never received the promised machinery. When deliveries occurred, prosecutors state the equipment was often used beyond advertised limits, with mismatched serial numbers and lower value than paid.
Follow-up inquiries from buyers were met with excuses until communication ceased entirely. Some victims managed to reclaim partial or full refunds, usually after threatening legal action. Investigators also uncovered attempts to withdraw additional funds from victims’ accounts months after the initial transactions. For instance, a $59,900 check from Plumb Level and Square cashed in December 2021 did not result in delivery, followed by two unauthorized deposit attempts in August and September 2022 using the same company’s banking details.
Authorities identified similar unauthorized check deposits totaling tens of thousands across multiple accounts, involving financial institutions such as Bank of America, Citizens Bank and Good Neighbors Federal Credit Union. If convicted, Knobloch could face up to 30 years in prison and fines reaching $1 million.
This article is for informational purposes and does not constitute financial advice.
