Former Hershey man sentenced for fraud and money laundering

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HARRISBURG, Pa. (WHTM) — A former Hershey resident was sentenced to 11 years in prison and three years of supervised release on Tuesday for fraud and other charges, according to the Middle District of Pa.

Michael Jay Jackson, 61, was sentenced by U.S. District Judge Sylvia Rambo on bankruptcy fraud, wire fraud, aggravated identity theft, and money laundering charges. Jackson was also ordered to pay $1,567,275 in restitution.

Jackson pled guilty in Nov. 2017 to an indictment that charged him with 12 counts of wire fraud, five counts of bankruptcy fraud, nine counts of false bankruptcy declarations, and two counts of aggravated identity theft.

Jackson defrauded his wife and the Bankruptcy Court for the Middle District of Pa. by filing seven Chapter 13 and Chapter 11 bankruptcy petitions, five of which were under his name and two were under his wife’s name without her knowledge or consent after he was banned from filing petitions for two years.

All seven petitions contained false information regarding his assets, income, and employment. These petitions were filed to postpone sheriff’s sales of his Hershey residence.

In March 2018 he pled guilty to a two-count criminal information charging him with wire fraud and money laundering after he carried out a loan-fraud scheme with a fake business venture between 2007 and 2017.

Jackson defrauded 22 victims out of $1.7 million by convincing them to give him loans to pay for his personal expenses while they believed a New York City capital investment company backed his fake company, INTEX Building Materials Group Inc.

Victims were promised big returns on alleged short-term loans, but INTEX BMG didn’t hold any significant assets, have any paid employees, and never generated income.

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