A Buffalo business consultant pleaded guilty to wire fraud and aggravated identity theft in federal court Monday, admitting to participating in a multimillion-dollar scheme in which he defrauded lenders using the identities of his own customers.

Paul Paredes, 53, owner of J&E Business Consulting LLC, faces a mandatory minimum sentence of two years in prison, with a maximum sentence of 20 years and a possible fine of $250,000, according to the U.S. Attorney’s Office. Paredes will be sentenced April 29 before Chief U.S. District Judge Elizabeth A. Wolford.

Federal prosecutors allege that between 2019 and 2023, Paredes misused personal and financial information entrusted to his company by small business clients to obtain fraudulent loans. Using his customers’ identities without their knowledge, Paredes submitted hundreds of financing applications to more than 23 lenders across the United States. The loans were then funneled into bank accounts he controlled, allegedly financing personal expenses and business operations, as well as repaying certain lenders to extend his scheme.

Assistant United States Attorney Katelyn M. Hartford said Paredes used the identities of at least 63 clients to maintain his access to funds. He allegedly transferred money through at least 12 bank accounts and defrauded lenders in various states, including New Jersey, Texas and Colorado. Authorities estimate the total financial damage to be at least $3.5 million.

Federal agencies, including the FBI and IRS, conducted the investigation with support from the New York State Department of Financial Services Bureau of Criminal Investigation. FBI Special Agent in Charge Matthew Miraglia and IRS Special Agent in Charge Thomas Fattorusso both emphasized that the case highlights the serious risks of identity theft and financial exploitation.

Paredes remains in custody until his sentencing next spring.

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