Indian-American pleads responsible in USD17-million financial institution fraud

Washington, September 16

An Indian-American president of a now-defunct New Jersey-based marble and granite wholesaler has admitted his position in scheming to defraud a financial institution in reference to a USD17 million secured line of credit score, a US Attorney has stated.

Rajendra Kankariya, 61, pleaded responsible by video-conference earlier than US District Judge Susan D Wigenton to committing wire fraud affecting a monetary establishment.

He faces a most penalty of 30 years in jail and a high-quality of USD1 million. Kankariya is scheduled to be sentenced on January 18.

According to court docket paperwork, from March 2016 via March 2018, Kankariya, the president and half proprietor of Lotus Exim International Inc, conspired with different LEI workers to acquire from the financial institution a USD17 million line of credit score by fraudulent means.

The financial institution prolonged the road of credit score believing it to have been secured partly by LEI’s accounts receivable. In actuality, Kankariya and his conspirators fabricated or inflated most of the accounts receivable, finally resulting in LEI defaulting on the road of credit score, prosecutors alleged.

To conceal the shortage of adequate collateral, LEI workers, with the data and approval of Kankariya, created faux e-mail addresses on behalf of LEI’s prospects so they may pose as them and reply the financial institution’s and outdoors auditor’s inquiries in regards to the accounts receivable.

The scheme concerned quite a few fraudulent accounts receivable the place the excellent balances have been both inflated or totally fabricated. The scheme precipitated the financial institution losses of about USD17 million, a press release issued by US Attorney Craig Carpenito stated. PTI

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