NRI “Nitin Vats” Admits Guilt in $17 Million Bank Fraud
Case in the United States
Los Angeles/Apr 18, 2024
NRIpress.club/Ramesh/ A.Gary Singh
Former Employee of New Jersey Marble and Granite Wholesaler Admits Role in $17 Million Bank Fraud
NRI Nitin Vats, a 52-year-old former employee of a now-defunct marble and granite wholesaler based in New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton to a charge of conspiracy to commit wire fraud affecting a financial institution. This plea was announced by U.S. Attorney Philip R. Sellinger.
According to court documents and statements made during the proceedings:
Between March 2016 and March 2018, Vats, along with an owner and other employees of Lotus Exim International Inc. (LEI), orchestrated a scheme to fraudulently obtain a $17 million line of credit from a bank. The victim bank issued the line of credit to LEI under the belief that it was secured by LEI's accounts receivable. However, the conspirators inflated or fabricated many of these accounts receivable, leading to LEI's eventual default on the line of credit.
To mask the insufficient collateral, Vats created fake email addresses for LEI's customers. Other LEI employees would then impersonate these customers to respond to inquiries from the victim bank and outside auditors regarding the accounts receivable. The scheme involved numerous instances of fraudulent accounts receivable, resulting in losses of approximately $17 million for the victim bank.
The charge of conspiracy to commit wire fraud affecting a financial institution carries a maximum penalty of 30 years in prison and a fine of $1 million. Vats is scheduled for sentencing on September 11, 2024.
U.S. Attorney Sellinger acknowledged the efforts of the FBI's special agents, led by Special Agent in Charge James E. Dennehy in Newark, for their investigation that led to Vats's guilty plea.
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