Parmjit “Paul” Parmar (48), Pavandeep Bakhshi (41), Ravi Chivukula (44) of Colts Neck, New Jersey, United Kingdom, Weehawken and Freehold, New Jersey respectively were indicted December 13, 2018 in an elaborate $300 million investment fraud scheme.
According to the New Jersey District Attorney’s Office, Parmar, Zaharis, Bakhshi and Chivukula who were former CEO and CFO and directors respectively of a publicly traded health care services company allegedly orchestrated a widespread scheme to defraud investors and others out of hundreds of millions of dollars in connection with a merger transaction designed to convert the company into a private entity.
The three New Jersey conspirators according to the court documents filed allegedly:
Created fictitious operating companies that Company A purportedly acquired in sham acquisitions.
Falsified and fabricated bank records of subsidiary entities in order to generate a phony picture of Company A’s revenue streams.
Generated fake income streams and phony customers of Company A and its subsidiaries.
Made material misrepresentations and omissions to the private investment firm and others.
The alleged 300 million investment fraud scheme was uncovered around September 2017, when Parmar, Bakhshi, Zaharis and Chivukula have either resigned from their positions or were terminated.
Charges & Arrests
Parmar, Zaharis and Chivukula have been charged with with one count of conspiracy to commit securities fraud and one count of securities fraud in May 2018.
Parmjit “Paul” Parmar was arrested by FBI on May 16, 2018 near his home in Colts Neck, NJ; where as Ravi Chivukula and Zaharis remain fugitives.
Pavandeep Bakhshi was charged with the same offenses in a separate criminal complaint in September, 2018.
Pavandeep Bakhshi was arrested at JFK Airport after he arrived from London on December 10, 2018.
Penalty for Investment Fraud
On the conspiracy count, Parmar, Bakhshi, Zaharis and Chivukula face a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense.
And, the securities fraud count includes a maximum potential penalty of 20 years in prison and a $5 million fine.
Parmar, Bakhshi, Zaharis and Chivukula must be presumed innocent unless and until proven guilty in a court of law.