Indian-American pleaded guilty in $17 million bank fraud

Vastavam web: The president and the chief financial officer of a now defunct New Jersey-based marble and granite wholesaler have been arrested for allegedly orchestrating and participating in a scheme to defraud a bank in connection with a $17 million secured line of credit, US Attorney Craig Carpenito announced on Wednesday, 16 September. Rajendra Kankariya, 61, pleaded guilty by video conference before US District Judge Susan D Wigenton to committing wire fraud affecting a financial institution.

Based on presented documents and statements made in court, it has been found that in order to conceal the lack of sufficient collateral, LEI and its employees, including Kankariya, devised a dubious scheme. They created fake email addresses on behalf of LEI’s customers so they could pose as those customers to answer the bank’s and outside auditor’s inquiries about the accounts receivables. Kankariya is now facing a maximum potential penalty of 30 years in prison and a fine of $1 million.