Pikesville man sentenced to federal prison for $1.5 million bank fraud – Baltimore Sun

A Baltimore County man will spend more than two years in federal prison after being convicted this week of participating in a bank fraud that robbed victims across the country of more than $1.5 million.

Theodore Sapperstein, 67, formerly of Pikesville, was sentenced to 30 months in prison and three years of probation at his sentencing Thursday before Senior U.S. District Judge Deborah K. Chasanow.

Federal prosecutors alleged that Sapperstein and his co-conspirators were involved in a scheme to illegally withdraw money from victims' bank accounts throughout the United States by creating shell companies and falsely telling banks that the withdrawals were legitimate payments for services provided by the shell companies.

The conspirators knew that a high rate of bounced or declined charges would lead to scrutiny by banks, so Sapperstein initiated “micro debits” on other bank accounts linked to the scheme to falsely lower the rate of declined charges, the U.S. Attorney's Office said.

Sapperstein helped process the micro debits and hired a payment processor whose company processed the unauthorized debits, the office said.

“My office is committed to tracking down and punishing the predatory conduct of white collar fraudsters who use, and often hide behind, shell companies and false accounting practices to steal money from unsuspecting victims,” ​​U.S. Attorney Erek L. Barron said in a statement.

Sapperstein was indicted in federal court in March and pleaded guilty shortly thereafter to conspiracy to commit bank fraud. U.S. prosecutors sought a prison sentence of 41 months, or nearly three and a half years, court records show.

“Mr. Sapperstein is very happy to have this matter behind him,” said Sapperstein's attorney, David B. Irwin. “Everyone has acknowledged that his conduct in this matter was completely out of character. The judge called him a 'good guy' who got caught up in this operation. He deeply regrets it.”

In July, another man was charged with bank fraud for his alleged role in the plot. Shoaib Ahmad of Canada faces the charges, according to the U.S. Attorney's Office in the Central District of California.

Originally published: August 16, 2024 at 12:39 pm