An Indian American computer entrepreneur, detained on suspicion of scamming over 10,000 investors out of over $45 million, made headlines. Suspect Neil Chandran, the 50-year old resident of Las Vegas, Nevada, was arrested in Los Angeles, California.
Police detained him on June 29 following the June 14 unsealing of an indictment from a federal grand jury in Nebraska, according to the Department of Justice.
Chandran owned multiple technology companies. The indictment claims that the investment fraud conspiracy exploited those entities.
According to allegations, he made fraudulent promises of high returns on the premise that one or more of his firms run under the name VIRSE. It was on the verge of being acquired by a group of affluent buyers.
Free Vi Lab, Studio Vi, Inc., ViDelivery Inc., ViMarket Inc., and Skalex USA Inc. are just a few of his businesses.
The indictment also accused Chandran of causing two other people to make false and misleading statements to investors. It also charged him with making unreasonably high return promises to investors in his businesses.
According to the indictment, the company shall use investor funds for running expenses until prominent business figures purchase it. However, there was no such buyer group for the claimed returns. But, he misdirected a significant portion of funds for other business ventures and personal benefits. They allegedly purchased luxury cars and real estate with the funds.
Further, the indictment alleges that 100 different assets, including bank accounts, real estate, and luxury vehicles, are subject to forfeiture. U.S. Marshals and the FBI are seizing most assets pending the criminal case resolution.
The cops have charged Chandran with three counts of wire fraud and two counts of monetary transactions in unlawful proceeds. If convicted, Chandran will face up to 30 years in prison. With assistance from the FBI’s Las Vegas, Los Angeles, Miami, and Omaha field offices, the Washington Field Office is continually looking into the matter.