Tenafly, New Jersey Indian Rajendra Kankariya (61) pleaded guilty September 15, 20 to orchestrating and participating in a fraud scheme against a bank in connection with a $17 million secured line of credit.
Rajendra Kankariya was President of a now defunct New Jersey-based marble and granite wholesale company Lotus Exim International Inc.
According to the case documents and court statements:
From late 2015 to early 2016, Lotus Exim International Inc. (LEI) obtained from the victim bank a $17 million line of credit to discharge a prior debt and gain working capital. The line of credit was to be secured by LEI’s accounts receivable and assets. In reality, LEI’s accounts receivable and assets were insufficient to serve as collateral for the line.
In order to conceal the lack of sufficient collateral, LEI and its employees, including Kankariya and Sethi, devised a scheme to create fake email addresses on behalf of LEI’s customers so they could pose as those customers and answer the bank’s and outside auditor’s inquiries about the accounts receivables. The scheme involved numerous fraudulent accounts receivable where the outstanding balances were either inflated or entirely fabricated. The scheme caused the victim bank losses of approximately $17 million.
Charges & Potential Penalty
Rajendra Kankariya was charged by complaint with one count of conspiracy to commit wire fraud affecting a financial institution.
The count of conspiracy to commit wire fraud to which Rajendra Kankariya pleaded guilty carries a maximum potential penalty of 30 years in prison and a fine of $1 million.
The sentencing of 61-year old Tenafly, New Jersey Indian Rajendra Kankariya is scheduled for January 18, 2021.