LI Man Pleads Guilty To Operating Advance Fee Loan Scheme

FARMINGDALE, NY — A Long Island man admitted he operated an advance fee loan scheme that targeted small business owners. Authorities said there were more than 35 victims across the country.

Demetrios Boudourakis, aka "Jimmy," 46, of Farmingdale, pleaded guilty Friday to second-degree grand larceny, a felony. He is scheduled to be sentenced Sept. 4 in Suffolk County Court.

Pursuant to the plea agreement, he is expected to be sentenced to five to 10 years in prison with restitution judgment orders totaling about $1 million for the victims.

Suffolk County District Attorney Timothy D. Sini said this was a great result for the victims of the scam, many of whom were hard-working small business owners.

"The fact that Boudourakis is now facing significant jail time sends a clear message that we will not tolerate fraud or theft, and that we will hold criminal enterprises like this one accountable," he said.

Authorities launched an investigation into Boudourakis and his associates in 2018 which found that they operated an advance fee loan scheme from as early as October 2016.

They offered loans to their targets in exchange for advance fees, and then collected the fees without providing the loans. After receiving the advance fees, they would cease contact with the victims.

The scheme was determined to have generated stolen proceeds in excess of $2 million.

The conspiracy operated as a boiler room, typically reaching victims through cold calling and then using high-pressure sales tactics to sell them the fraudulent loans.

From 2016 through early 2018, Boudourakis operated the scheme out of a boiler room located in Melville. In May 2018, Boudourakis vacated that location and re-established his illicit operation at a storefront located in Seaford under the name “Federal Business Lenders.”

He also operated this scheme through shell companies and under other business names, including Federal Business Funding, JTT Funding, JTT Global Holdings, Inc., Acceleration Capital Group, Blackrock Funders, Inc. and Blackrock, Inc.

Following the investigation, Boudourakis was arrested on June 11, 2019.