US Indian man pleads guilty to $1.26m fraud

A MARYLAND man pleaded guilty to wire fraud and identity theft in connection with a fraudulent investment scheme worth approximately $1.26 million. 

Manish Singh, 48, faces a maximum penalty of 20 years in prison when sentenced on July 30. He was three days into his trial when he entered a plea agreement with the government resolving allegations that he operated a million-dollar investment fraud scheme. 

“In the midst of a jury trial, the defendant admitted that he deceived victims into believing they were investing more than $1.2 million in a high-end fabric design business, when in reality, he fraudulently used their money to fund personal expenses,” said acting US attorney for the Eastern District of Virginia, the United States Department of Justice reported . 

“Our office is grateful to the FBI and prosecution team for uncovering and piecing together the evidence that exposed this investment fraud scheme. We will continue to hold accountable those who seek to swindle honest investors.”

According to court records and evidence, Singh entered into an agreement in 2016 with a married couple in Virginia to create a business that would design and sell high-end fabrics under the company called Sanaa Home and Lifestyle. The couple was to provide the capital for the business while Singh was to contribute his expertise and contacts in the fabric industry.

Singh reportedly received $1.26m over the next two years. During that time, he is accused of sending doctored expense sheets to the victim-investors showing that their money was being used to pay contract employees, front manufacturing costs in India and ship the fabric to brand-name companies in the U.S. He also allegedly told them that returns on their investment were being rolled over to pay for new fabric orders.

In reality, Singh was using the victims’ money almost entirely for personal expenses, including a Lexus, viewing live pornography online, and his rent, as per the court records.