A 52-year-old Indian citizen, Nitin Vats, has admitted to his involvement in a plan to defraud a US bank concerning a USD 17 million secured line of credit, as reported by US Attorney Philip R. Sellinger.
Vats, previously affiliated with a now-closed marble and granite wholesaler based in New Jersey, confessed to one count of wire fraud conspiracy affecting a financial institution during a hearing with US District Judge Susan D. Wigenton, according to the Department of Justice (DoJ) on Wednesday.
From March 2016 to March 2018, documents reveal Vats, alongside the proprietor and other staff members of Lotus Exim International Inc (LEI), conspired to secure the substantial line of credit from the victim bank under false pretenses.
The victim bank initially granted the credit to LEI, believing it to be underpinned by genuine accounts receivable. However, the schemers manipulated and exaggerated these accounts, ultimately leading LEI to default on the line of credit, as stated in a DoJ press release.
Federal prosecutors claim Vats devised deceptive email addresses for LEI’s clients to mislead the bank and external auditors into believing the accounts receivable were legitimate.
The fraudulent scheme encompassed various fake accounts receivable with artificially heightened or completely concocted balances, resulting in an estimated loss of USD 17 million for the victim bank. Vats faces up to 30 years in prison and a fine of USD 1 million. His sentencing is set for September 11.
