Indian-origin former Chief Executive Officer Parmjit Parmar has been sentenced to five years in prison in the United States in a major investment fraud case involving nearly ₹1,760 crore to ₹1,800 crore. A court in New Jersey also ordered him to pay nearly ₹1,000 crore to ₹1,040 crore in restitution, along with three years of supervised release after completion of his prison term.
Fraud Linked to Healthcare Firm Acquisition
The case was linked to the acquisition of a healthcare services company listed on the London Stock Exchange’s Alternative Investment Market. Prosecutors said Parmar and his associates, including Sotirios Zaharis and Ravi Chivukula, were involved in a financial conspiracy between 2015 and 2017.
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According to court records, the accused allegedly inflated the company’s valuation and presented misleading financial information to investors and financial institutions. The prosecution said the accused created a false picture of strong financial performance and business growth to attract large-scale funding.
Investigators found that nearly ₹1,760 crore to ₹1,800 crore was raised from a private investment firm and a consortium of financial institutions. The funds were later routed through controlled bank accounts and allegedly diverted for purposes unrelated to the stated business objectives.
Shell Firms and Falsified Records Used
Court documents stated that the accused created shell companies and manipulated banking records to fabricate revenue streams. Fake invoices and falsified customer data were also allegedly used to strengthen balance sheets and maintain investor confidence.
Authorities described the operation as a structured financial scheme involving multiple layers of transactions intended to conceal the movement and origin of funds. The alleged irregularities began to surface in 2017 after internal audits and regulatory scrutiny exposed inconsistencies in the companies’ records.
The case later triggered resignations and layoffs within the affected companies. By 2018, several related entities had filed for bankruptcy, citing the fraud as a major contributing factor.
Court Calls Case Serious Breach of Trust
While delivering the sentence, the court said the case involved not only significant financial losses but also a serious breach of trust in the global financial system. The judge imposed a five-year prison term and ordered substantial restitution.
The court noted that investors had been deliberately misled through a false narrative of financial stability. Prosecutors said the scheme was designed to raise substantial capital by presenting fabricated financial strength and business prospects.
Officials described the ruling as a strong message against large-scale financial fraud. The case has also highlighted concerns over cross-border investment structures, corporate transparency and the need for stricter due diligence by institutional investors.
