Schwenksville Man Ran Multi-State Money Laundering Scheme: Feds

SCHWENKSVILLE, PA — A Schwenksville man who orchestrated a multi-state fraud scheme in which he made hundreds of thousands of dollars through fraudulent sales of automobiles has pleaded guilty in federal court, officials said.

Blake Rezabek, 29, pleaded guilty to money laundering, income tax evasion, and related counts, and faces significant jail time. Sentencing is forthcoming.

Rezabek posted advertisements for older model cars and trucks around the Internet, including sites like Craigslist and Ebay, according to court filings. Typically the for sale price was under $10,000.

But once buyers paid up, Rezabek cut off all contact and did not deliver the vehicle as promised, authorities said.

Instead, Rezabek recruited numerous accomplices to open bank accounts into which the money for these "vehicles" was deposited, according to officials. The recruits then kept a small portion of the money for themselves, and then gave most of it Rezabek.

In order to obfuscate its source, Rezabek had other recruits open multiple bank accounts in various parts of the country, including Colorado, Florida, Michigan, and North Carolina. The money was transferred between accounts in an attempt to keep it hidden, court filings state.

All told, he reeled in some $899,920 from victims, according to the authorities.

Sentencing is forthcoming.