Close X
Thursday, January 16, 2025
ADVT 
International

Elderly Indian-American Face 30-Year Jail In Multi-Million Dollar Fraud

Darpan News Desk IANS, 24 Jun, 2016 12:42 PM
    WASHINGTON:  An Indian-American couple has been indicted in a multi-million financial fraud in the US and faces up to 30 years in prison and a USD 1 million fine.
     
    Pethinaidu Veluchamy, 70 and his 65-year-old wife Parameswari Veluchamy, who owned First Mutual Bancorp in Illinois, intentionally hid cash and assets from creditors after defaulting on USD 40 million in personal and corporate loans, according to the indictment.
     
    The couple faces up to 30 years in prison and a USD 1 million fine for each count of financial fraud, it said.
     
    They were the principal shareholders of First Mutual Bancorp of Illinois Inc., a holding company for Mutual Bank.
     
    In June 2009, according to the indictment, the couple defaulted on personal and corporate loans totaling USD40 million.
     
    The following month, Mutual Bank was shut down by federal regulators.
     
    Prior to the shutdown and continuing until at least November 2015, the couple hid millions of dollars in assets by falsifying documents, moving money into domestic and foreign bank accounts, and directing employees to destroy financial records, the indictment states, the Justice Department said in a press release.
     
    The couple also transferred cash to their two adult children, with nearly USD 8.5 million going to one and more than USD 10.1 million to the other, according to the indictment.
     
    The 12-count indictment charges Pethinaidu with four counts of bank fraud, two counts of destroying records to obstruct a bankruptcy proceeding, two counts of making a false statement under oath in a bankruptcy proceeding, and one count of making a false statement in an application for a US passport.
     
    Parameswari is charged with four counts of bank fraud, two counts of destroying records to obstruct a bankruptcy proceeding, one count of making a false statement under oath in a bankruptcy proceeding, and one count of making a false statement in an application for a US passport.

    MORE International ARTICLES

    Saudi Employer Denies Chopping Off Indian Woman's Hand

    Saudi Employer Denies Chopping Off Indian Woman's Hand
    The Saudi Arabian employer of an Indian domestic help whose hand was "chopped off" has said the woman had to get her hand amputated in hospital after she damaged it badly while jumping from the third floor of their house in Riyadh.

    Saudi Employer Denies Chopping Off Indian Woman's Hand

    London Police Hunt Man Over Indian-Origin Woman Usha Patel's Death

    London Police Hunt Man Over Indian-Origin Woman Usha Patel's Death
    Usha Patel, 44, was on Thursday found dead in her flat in London's Cricklewood area where she used to live with her young autistic son

    London Police Hunt Man Over Indian-Origin Woman Usha Patel's Death

    Indian American Substitute Teacher Mihirbhai Patel Arrested For Paid Sex With Male Student

    Indian American Substitute Teacher Mihirbhai Patel Arrested For Paid Sex With Male Student
    Mihirbhai Patel, 24, met the teenaged boy earlier this year on a website. The two arranged to meet for sex at a Whiteland area motel and then at the home of a relative of the boy

    Indian American Substitute Teacher Mihirbhai Patel Arrested For Paid Sex With Male Student

    Nawaz Sharif Invites Geelani To Pakistan

    Nawaz Sharif Invites Geelani To Pakistan
    Pakistan Prime Minister Nawaz Sharif has invited Hurriyat Conference chairperson Syed Ali Shah Geelani to that country, the Kashmiri separatist leader and the organisation said on Saturday.

    Nawaz Sharif Invites Geelani To Pakistan

    British-Indian Daljit Nagra Appointed BBC Radio 4's First Resident Poet

    British-Indian Daljit Nagra Appointed BBC Radio 4's First Resident Poet
    Nagra will also appear on Radio 4 shows and social media platforms, while writing original work to commission, The Telegraph daily reported.

    British-Indian Daljit Nagra Appointed BBC Radio 4's First Resident Poet

    No Inquest Into Murder Of British-indian Businessman Shrien Dewani's Wife

    A South African court last year acquitted Shrien Dewani of ordering the murder of his wife, Anni Dewani, 28, who was shot on the outskirts of Cape Town in November 2010 during their honeymoon.

    No Inquest Into Murder Of British-indian Businessman Shrien Dewani's Wife