MANASSAS, VA – A Manassas man has been sentenced to nearly three years in prison over a multi-year scheme that defrauded dozens of people of more than $3.5 million, according to the Department of Justice.
Alexander A. Olave, 35, was sentenced to two years and nine months in prison on Sept. 11, the U.S. Attorney's Office for the Eastern District of Virginia announced in a statement. He pleaded guilty to wire fraud in June, a charge that carried a maximum sentence of 20 years.
Prosecutors say Olave operated AO Elite, a company falsely advertising that it had built hundreds of online storefronts that had generated $112 million in revenue for clients. They said the company used fake testimonial videos and promised guaranteed profits. Olave collected up-front fees for his services but never built the internet storefronts clients paid for. When clients demanded refunds, he invented reasons to delay the process.
Prosecutors say Olave eventually closed down AO Elite but started two more companies to conduct the same fraudulent business, eventually amassing more than 100 victims.
Olave will serve three years of supervised release after his prison sentence, during which he is barred from selling anything on the internet without prior approval. He was also ordered to pay restitution to victims.
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