NEWARK, N.J. – A Pennsylvania man has admitted using his New Jersey auto dealerships to steal hundreds of thousands of dollars from dozens of Russian citizens who paid in advance for luxury automobiles.
Federal prosecutors in New Jersey say Sergey Kapustin pleaded guilty Tuesday to money laundering. The 49-year-old Warminster, Pennsylvania, man faces up to 10 years in prison when he's sentenced July 10.
Kapustin operated auto dealerships in Elizabeth, and at least one Russian-language website that offered luxury vehicles for sale below market value. He promised the autos would be delivered to Russian citizens, but only if they paid full price in advance.
Kapustin admitted his customers often did not receive the vehicles they had wired payment for, or were shipped vehicles that were either not operable or in poor condition.
Prosecutors say the scheme ran from January 2008 through December 2014.