New Jersey Healthcare CEO Indicted in $200 Million Fraud – NBC New York

What you need to know

  • CEO of New Jersey medical billing firm arrested by FBI on suspicion of launching massive fraud against unsuspecting investors
  • Two Treasurer Also Indicted in $200 Million Fraud
  • A spokeswoman for Constellation Technologies declined to comment on the charges against three former executives.

The CEO of a New Jersey medical billing firm was arrested Wednesday by the FBI on charges of orchestrating a $200 million fraud against unsuspecting investors.

Parmjit “Paul Parmar, former CEO of Constellation Healthcare Technologies, has been accused of falsely inflating the value of his company as officials tried to take the publicly traded company private.

Colts Neck’s 48-year-old Parmar has been charged with securities fraud and conspiracy. Part of the alleged scheme involved buying nonexistent entities and pouring millions of dollars into separate accounts, prosecutors said.

According to the FBI, Parmjit not only created bogus acquisitions, but also oversaw the falsification of bank records, listed bogus customers, and misrepresented profits to investors. One bogus company was called “MDRX Billing,” and prosecutors for the Ohio-based company said it never existed and alone he was a $28 million rip-off.

Two finance officers, Weehawken’s Sotirios “Sam” Zaharis, 51, and Freehold’s Ravi Chibukla, 44, were also charged. They are believed to be overseas in India and have not been reached for comment. A lawyer for Palmer, who is scheduled to appear in Newark federal court on Wednesday afternoon, was not immediately available.

“The evidence suggests that defendants simply fabricated these customers (and related revenue) and then attempted to create their real addresses by leasing office space in their names.” said the criminal complaint.

Constellation was listed on the London Stock Exchange’s Alternative Investment Market. Investigators said the plot took place from 2015 to 2017. Constellation eventually filed for bankruptcy and all three executives left the company in his 2017.

In addition to filing criminal charges, the Federal Bureau of Investigation is seeking to seize Palmer’s large house in Colts Neck and three New York City apartments. The highest count carries a maximum sentence of 20 years in prison.

A spokeswoman for Constellation Technologies declined to comment on the charges against the three former executives.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *