Forklift Fraud? Feds Say 32 Buyers Lost Over $1 Million in Alleged Equipment Scam

#KRITICIZM - Federal prosecutors have accused a New York businessman of orchestrating an alleged years-long scheme that left dozens of customers out more than $1 million after they paid for forklifts and industrial equipment that authorities say often never arrived.

According to a federal criminal complaint, Jason Knobloch, 56, of Lancaster, New York, allegedly operated a fraudulent business beginning in February 2021 through companies including Kelly Lift Equipment and Lifts 4 Less. Investigators say customers across the country found the businesses through online searches while shopping for forklifts and other industrial machinery.

After negotiating prices, buyers reportedly followed payment instructions and sent thousands of dollars expecting their equipment to be delivered. Instead, prosecutors allege many customers never received the forklifts they purchased.

In the cases where equipment was delivered, investigators claim the machinery often did not match what customers had paid for. Some forklifts were allegedly worth significantly less than advertised, carried different serial numbers, or had logged far more operating hours than originally represented.

According to prosecutors, customers were repeatedly given explanations for shipping delays before communication allegedly stopped altogether. Emails and phone calls reportedly went unanswered, leaving buyers without either their equipment or their money. While some refunds were issued, authorities say they typically came only after customers threatened legal action.

Federal investigators estimate that approximately 32 victims collectively lost more than $1 million through the alleged operation.

The complaint also accuses Knobloch of attempting to deposit additional checks using customers’ banking information without authorization, in some instances months after the original transactions had already taken place. Those allegations led prosecutors to charge him with bank fraud, a federal offense that carries a maximum penalty of 30 years in prison and a $1 million fine if convicted.

Knobloch has been released under home confinement while the case proceeds through the federal court system.

As with all criminal cases, it is important to note that these are allegations contained in a federal complaint. Knobloch is presumed innocent unless and until proven guilty in a court of law.

The case serves as a reminder for businesses and individuals purchasing expensive equipment online to thoroughly verify sellers, research company histories, and use secure payment methods before sending large sums of money.