Long Island Businessman Convicted of Fraud

John Mitty Tuesday, January 28, 2014

Daniel Greenberg, 40, a businessman on Long Island who operated Classic Closeouts, LLC., an online clothing business, has been convicted of scamming thousands of customers out of a grand total of $5 million.  Greenberg was convicted by a federal jury in Central Islip on Friday on 13 separate charges, including eight counts of wire fraud, three counts of money laundering, one count of access device fraud, and one count of aggravated identity theft. 

The charges were to customers’ credit cards were made during the time period from June 2008 to April 2009.  During that time, Greenberg stole money in increments of $49 of more, and made over 60,000 transactions.  Some cards were charged only once, while others were charged a number of times.  Customers who stood up to Greenberg and asked their credit card companies and banks to intervene were turned down, since Greenberg had a ready-made excuse that customers had enrolled in a “frequent shopper club,” and that the charges were legitimate fees.  Greenberg could serve up to 20 years in prison for each count of wire fraud, plus 10 years for money laundering, plus 15 years for access device fraud, plus an additional two years for identity theft.  In short, he is going away for a long time.

jmitty@longislandyellowpages.com

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