US authorities have arrested California-based businessman Mahender Makhijani in Southern California over allegations of conning banks out of nearly $100 million. &nbsp;Professionally, he operated &nbsp;Newport Beach-based Cantor Group V LLC, which would help take out high-value loans, backed by commercial real estate.“Mahender Makhijani, 44, a lawful permanent resident from India living in Corona del Mar [California], was arrested this morning on a federal criminal complaint charging him with defrauding a bank out of nearly $100 million,” wrote first assistant US attorney for the Central District of California, Bill Essayli, in a post on Social media<h2>Why was Makhijani arrested?</h2>Federal prosecutors allege that Makhijani manipulated title insurance documents to make it appear that his company had a stronger hold on the collateral than it actually had, thus funnelling millions of dollars. He used digital software to alter the property title in insurance documents and metadata before submitting, while also providing misleading information during calls and in spreadsheets. The alleged scam involved concealed lien position, shell companies and deceptive financial transactions designed to mislead the lender.“Makhijani has significant financial resources, but the government has not fully traced and accounted for those resources, which are almost certainly not held in Makhijani’s name,” the complaint states.Also Read: <a href="https://www.wionews.com/photos/jee-vs-gaokao-hardest-exam-in-the-world-1781184165339">China's Gaokao vs India's JEE: Comparing the world's toughest entrance examinations</a><h2>Extravagant Life of Makhijani&nbsp;</h2>Makhijani led a luxurious life; he wore designer clothes, travelled in private jets, owned luxury vehicles including a Bentley, Porsche and Mercedes G-Wagon. He owned two neighbouring mansions in Corona del Mar. According to a New York Post report, he was accused of hosting exclusive parties involving drugs and sex workers to extort people, like business partners, associates and employees.<h2>Pattern of threat and intimidation</h2>Apart from the arrest, Makhijani is also involved in another legal battle where he is liable for paying $1.3 billion in damages in connection with his real-estate dealings with Laguna Beach businessman Mohammad Honarkar. Court documents also allege that Makhijani used threats, violence and intimidation to gain leverage over rivals. He has also been accused of using armed associates to seize hotels and restaurants in California. However, all of these allegations remain unproven; he might be looking at a 30-year sentence if proven guilty in a 30-year case.

Indian-origin businessman Mahender Makhijani was arrested in California over allegations of defrauding banks of nearly $100 million through manipulated title insurance documents and deceptive real estate transactions.

US authorities have arrested California-based businessman Mahender Makhijani in Southern California over allegations of conning banks out of nearly $100 million. Professionally, he operated Newport Beach-based Cantor Group V LLC, which would help take out high-value loans, backed by commercial real estate. “Mahender Makhijani, 44, a lawful permanent resident from India living in Corona del Mar [California], was arrested this morning on a federal criminal complaint charging him with defrauding a bank out of nearly $100 million,” wrote first assistant US attorney for the Central District of California, Bill Essayli, in a post on Social media Why was Makhijani arrested? Federal prosecutors allege that Makhijani manipulated title insurance documents to make it appear that his company had a stronger hold on the collateral than it actually had, thus funnelling millions of dollars. He used digital software to alter the property title in insurance documents and metadata before submitting, while also providing misleading information during calls and in spreadsheets. The alleged scam involved concealed lien position, shell companies and deceptive financial transactions designed to mislead the lender. “Makhijani has significant financial resources, but the government has not fully traced and accounted for those resources, which are almost certainly not held in Makhijani’s name,” the complaint states. Also Read: China's Gaokao vs India's JEE: Comparing the world's toughest entrance examinations Extravagant Life of Makhijani Makhijani led a luxurious life; he wore designer clothes, travelled in private jets, owned luxury vehicles including a Bentley, Porsche and Mercedes G-Wagon. He owned two neighbouring mansions in Corona del Mar. According to a New York Post report, he was accused of hosting exclusive parties involving drugs and sex workers to extort people, like business partners, associates and employees. Pattern of threat and intimidation Apart from the arrest, Makhijani is also involved in another legal battle where he is liable for paying $1.3 billion in damages in connection with his real-estate dealings with Laguna Beach businessman Mohammad Honarkar. Court documents also allege that Makhijani used threats, violence and intimidation to gain leverage over rivals. He has also been accused of using armed associates to seize hotels and restaurants in California. However, all of these allegations remain unproven; he might be looking at a 30-year sentence if proven guilty in a 30-year case.

Indian-origin businessman Mahender Makhijani was arrested in California over allegations of defrauding banks of nearly $100 million through manipulated title insurance documents and deceptive real estate transactions.

Bentley, private jets and mansions: Who is Mahender Makhijani, Indian businessman accused of $100 mn bank fraud?

A sprawling financial scandal involving luxury lifestyles, extravagant spending, and allegations of large-scale banking fraud has captured global attention. Investigators say millions of dollars were allegedly diverted to fund private jets, supercars, lavish parties, and other high-end expenses.

How did the alleged fraud operate? Who benefited from the scheme? And what does the case reveal about financial oversight and corporate accountability?

Private Jets, Supercars, Sex Workers & A $100 Million Fraud 

Cybercrime is rapidly rising all over the world. Learn how victims are falling into traps for bank fraud or online scams. Learn how to recover your money after falling victim to bank fraud or online scams. This video breaks down the step-by-step process to help you take action and get your stolen funds back.

Bank fraud | All about the process of getting your money back from scammers

Japanese baseball great Shohei Ohtani's former interpreter has agreed to plead guilty to federal charges he illegally transferred nearly $17 million from the athlete's bank account, without Ohtani's knowledge, to pay off his own gambling debts. The plea agreement reached between federal prosecutors and Ohtani's onetime confidante, Ippei Mizuhara, 39, was announced on Wednesday by the U.S. Attorney's Office in Los Angeles, where the interpreter was charged in a criminal complaint last month.

A 33-page record of the deal, in which Mizuhara agreed to plead guilty to one count of felony bank fraud and one count of subscribing to a false tax return, was filed on Wednesday in U.S. District Court in Los Angeles. He is expected to formally enter the plea at an arraignment set for May 14, according to the U.S. Attorney's Office.

A federal bank fraud conviction carries a statutory maximum sentence of 30 years in prison, with the tax offense punishable by up to three years behind bars.

Mizuhara was accused of embezzling nearly $17 million from an account of Ohtani's that Mizuhara had helped set up, and wiring the funds without the player's knowledge to an illegal bookmaking operation to cover Mizuhara's gambling debts.

Also read:&nbsp;<a href="https://www.wionews.com/football/real-madrid-stun-bayern-munich-with-late-fightback-to-enter-uefa-champions-league-final-719512">Real Madrid stun Bayern Munich with late fightback to enter UEFA Champions League final</a>

Announcing the charges on April 11, U.S. Attorney E. Martin Estrada stressed there was nothing to suggest any wrongdoing by Ohtani, a power-hitting pitcher who signed a record $700 million, 10-year contract to join the Los Angeles Dodgers this season. He became the highest paid player in Major League Baseball.

The allegations of theft leveled against Mizuhara surfaced during the Dodgers' season-opening series in Seoul, South Korea.

The outcome of the investigation spared the Dodgers and the league a potential scandal of epic proportions, recalling the controversy stirred 35 years ago when Pete Rose was accused of gambling on baseball games, including those of his own team, while he played for and managed the Cincinnati Reds.

Japanese baseball great Shohei Ohtani's former interpreter has agreed to plead guilty to federal charges he illegally transferred nearly $17 million from the athlete's bank account, without Ohtani's knowledge, to pay off his own gambling debts.

Japanese baseball great Shohei Ohtani's former interpreter has agreed to plead guilty to federal charges he illegally transferred nearly $17 million from the athlete's bank account, without Ohtani's knowledge, to pay off his own gambling debts. The plea agreement reached between federal prosecutors and Ohtani's onetime confidante, Ippei Mizuhara, 39, was announced on Wednesday by the U.S. Attorney's Office in Los Angeles, where the interpreter was charged in a criminal complaint last month. A 33-page record of the deal, in which Mizuhara agreed to plead guilty to one count of felony bank fraud and one count of subscribing to a false tax return, was filed on Wednesday in U.S. District Court in Los Angeles. He is expected to formally enter the plea at an arraignment set for May 14, according to the U.S. Attorney's Office. A federal bank fraud conviction carries a statutory maximum sentence of 30 years in prison, with the tax offense punishable by up to three years behind bars. Mizuhara was accused of embezzling nearly $17 million from an account of Ohtani's that Mizuhara had helped set up, and wiring the funds without the player's knowledge to an illegal bookmaking operation to cover Mizuhara's gambling debts. Also read: Real Madrid stun Bayern Munich with late fightback to enter UEFA Champions League final Announcing the charges on April 11, U.S. Attorney E. Martin Estrada stressed there was nothing to suggest any wrongdoing by Ohtani, a power-hitting pitcher who signed a record $700 million, 10-year contract to join the Los Angeles Dodgers this season. He became the highest paid player in Major League Baseball. The allegations of theft leveled against Mizuhara surfaced during the Dodgers' season-opening series in Seoul, South Korea. The outcome of the investigation spared the Dodgers and the league a potential scandal of epic proportions, recalling the controversy stirred 35 years ago when Pete Rose was accused of gambling on baseball games, including those of his own team, while he played for and managed the Cincinnati Reds.

MLB: Japanese baseball star Shohei Ohtani's ex-interpreter agrees to plead guilty to bank fraud

Japanese baseball star Shohei&nbsp;Ohtani's former interpreter has been charged with bank fraud for stealing millions of dollars from the Los Angeles Dodgers player to cover gambling debts, U.S. officials announced at a news conference on Thursday (April 11).

Ippei Mizuhara is accused of stealing more than $16 million from an account of&nbsp;Ohtani's that Mizuhara had helped set up, and sending the funds to an illegal sports gambling operation, according to U.S. Attorney E. Martin Estrada.

Ohtani, who signed a record $700 million, 10-year contract to join the Dodgers this season, told reporters at a March 25 press conference that he was a victim of theft by Mizuhara and that he never bet on baseball or knowingly paid a bookmaker.

Also read:&nbsp;<a href="https://www.wionews.com/sports/nfl/news-oj-simpson-passes-away-reliving-nfl-legends-sensational-run-in-1973-710355">OJ Simpson passes away: Reliving NFL legend's sensational run in 1973</a>

Federal investigators have not found any evidence suggesting Mizuhara placed bets on baseball games, according to Estrada. Estrada said the Justice Department considers&nbsp;Ohtani&nbsp;a victim of Mizuhara's alleged fraud and has not accused him of any wrongdoing.

Mizuhara is expected to make his first court appearance in U.S. District Court in downtown Los Angeles in the near future. Bank fraud carries a statutory maximum sentence of 30 years in federal prison.

Japanese baseball star Shohei Ohtani's former interpreter has been charged with bank fraud for stealing millions of dollars from the Los Angeles Dodgers player to cover gambling debts, U.

Japanese baseball star Shohei Ohtani's former interpreter has been charged with bank fraud for stealing millions of dollars from the Los Angeles Dodgers player to cover gambling debts, U.S. officials announced at a news conference on Thursday (April 11). Ippei Mizuhara is accused of stealing more than $16 million from an account of Ohtani's that Mizuhara had helped set up, and sending the funds to an illegal sports gambling operation, according to U.S. Attorney E. Martin Estrada. Ohtani, who signed a record $700 million, 10-year contract to join the Dodgers this season, told reporters at a March 25 press conference that he was a victim of theft by Mizuhara and that he never bet on baseball or knowingly paid a bookmaker. Also read: OJ Simpson passes away: Reliving NFL legend's sensational run in 1973 Federal investigators have not found any evidence suggesting Mizuhara placed bets on baseball games, according to Estrada. Estrada said the Justice Department considers Ohtani a victim of Mizuhara's alleged fraud and has not accused him of any wrongdoing. Mizuhara is expected to make his first court appearance in U.S. District Court in downtown Los Angeles in the near future. Bank fraud carries a statutory maximum sentence of 30 years in federal prison.

Japanese baseball star Shohei Ohtani's former interpreter charged with federal bank fraud

An Atlanta judge, on Monday, sentenced reality TV show star Todd Chrisley to 12 years in prison with 16 months probation and his wife Julie Chrisley to seven years in prison with 16 months probation after they both were found guilty in a federal tax evasion and bank fraud case.&nbsp;The couple's report date is set for January 15, 2023.

According to Insider and Fox 5 Atlanta, Todd was convicted of conspiracy to commit bank fraud, tax evasion fraud and conspiracy to defraud the United States. The couple asked for leniency before the sentencing.&nbsp;In a statement, Todd said that his wife, who is the primary caregiver for their 16-year-old son Grayson and 10-year-old granddaughter Chloe, "should not be punished" to the same extent.

Julie's lawyers have requete the judge to consider&nbsp;a sentence of probation, restitution, and community service for Julie, stating that the reality TV show star had minimal role in the controversy and has no prior convictions.

Chrisley's former accountant,&nbsp;Peter Tarantino, was also found guilty in the case. He has been charged with two counts of willfully filing false tax returns and is expected to serve 36 months in prison, which will begin in May following hip surgery.

Also read:&nbsp;<a href="https://www.wionews.com/entertainment/no-show-kanye-west-misses-divorce-deposition-with-kim-kardashian-536256">No-show! Kanye West misses divorce deposition with Kim Kardashian</a>

In the past, Todd Chrisley has&nbsp;candidly spoken about his family's legal turmoil. During an episode of&nbsp;'Chrisley Confessions'&nbsp;podcast in June, Tod shared that he is disheartened by his family's predicament.

"We wanted to let everyone know that it's a very sad, heartbreaking time for our family right now," Todd said. "But we still hold steadfast in our faith and we trust that God will do what he does because God's a miracle worker -- and that's what we're holding out for."&nbsp;

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An Atlanta judge, on Monday, sentenced reality TV show star Todd Chrisley to 12 years in prison with 16 months probation and his wife Julie Chrisley to seven years in prison with 16 months probation after they both were found guilty in a federal tax evasion and bank fraud case.

An Atlanta judge, on Monday, sentenced reality TV show star Todd Chrisley to 12 years in prison with 16 months probation and his wife Julie Chrisley to seven years in prison with 16 months probation after they both were found guilty in a federal tax evasion and bank fraud case. The couple's report date is set for January 15, 2023. According to Insider and Fox 5 Atlanta, Todd was convicted of conspiracy to commit bank fraud, tax evasion fraud and conspiracy to defraud the United States. The couple asked for leniency before the sentencing. In a statement, Todd said that his wife, who is the primary caregiver for their 16-year-old son Grayson and 10-year-old granddaughter Chloe, "should not be punished" to the same extent. Julie's lawyers have requete the judge to consider a sentence of probation, restitution, and community service for Julie, stating that the reality TV show star had minimal role in the controversy and has no prior convictions. Chrisley's former accountant, Peter Tarantino, was also found guilty in the case. He has been charged with two counts of willfully filing false tax returns and is expected to serve 36 months in prison, which will begin in May following hip surgery. Also read: No-show! Kanye West misses divorce deposition with Kim Kardashian In the past, Todd Chrisley has candidly spoken about his family's legal turmoil. During an episode of 'Chrisley Confessions' podcast in June, Tod shared that he is disheartened by his family's predicament. "We wanted to let everyone know that it's a very sad, heartbreaking time for our family right now," Todd said. "But we still hold steadfast in our faith and we trust that God will do what he does because God's a miracle worker -- and that's what we're holding out for." WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

'Chrisley Knows Best' stars Todd and Julie sentenced to federal prison for bank fraud, tax evasion

Authorities in China's Henan province cracked down on at least four banks over alleged mismanagement of funds. The regulators froze the funds of customers which led to protests. Police claimed they had arrested 234 people describing them as belonging to "criminal gangs" even as regulators said they had begun repaying depositors.

Regulators last week offered repayments to more customers of rural banks who were hit by the latest scam. Authorities had also named a bank in Anhui province allegedly involved in a scheme to defraud investors.

<a href="https://www.wionews.com/videos/chinese-developer-evergrandes-unit-ordered-to-pay-out-11-billion-502448">Watch:&nbsp;Chinese developer Evergrande's unit ordered to pay out $1.1 billion</a>

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Hundreds of protesters had earlier gathered outside the branch of the People's Bank of China in Henan's Zhengzhou to demand their money as they accused local officials and police of corruption. Authorities assured people they would accelerate plans to tackle the local financial crisis, reports said.

The demonstration began trending on China's social media site Weibo as netizens expressed their sympathy for those who suffered due to the bank frauds.

The banking scam&nbsp;comes amid the property crisis as the Chinese property giant Evergrande cancelled a contract to build a football stadium. Evergrande has already failed to publish a preliminary restructuring proposal after going bankrupt.

Also Read:&nbsp;<a href="https://www.wionews.com/world/ukraine-war-chinese-banks-limit-financing-for-russian-purchases-to-avoid-western-sanctions-456792">Chinese banks limit financing for Russian purchases to avoid Western sanctions</a>

Reports claimed the troubled property giant had found a potential buyer for its Hong Kong headquarters even as it reels under a massive $300 billion in liabilities. The company had fired its CEO and CFO as the company's expanding crisis severely hit the property sector.

Reports claim homebuyers in some cities have also stopped making mortgage payments on unfinished projects however reports claim the Communist Party may support developers with state funding.

(With inputs from Agencies)

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&nbsp;

Authorities in China's Henan province cracked down on at least four banks over alleged mismanagement of funds. The regulators froze the funds of customers which led to protests.

Authorities in China's Henan province cracked down on at least four banks over alleged mismanagement of funds. The regulators froze the funds of customers which led to protests. Police claimed they had arrested 234 people describing them as belonging to "criminal gangs" even as regulators said they had begun repaying depositors. Regulators last week offered repayments to more customers of rural banks who were hit by the latest scam. Authorities had also named a bank in Anhui province allegedly involved in a scheme to defraud investors. Watch: Chinese developer Evergrande's unit ordered to pay out $1.1 billion × Hundreds of protesters had earlier gathered outside the branch of the People's Bank of China in Henan's Zhengzhou to demand their money as they accused local officials and police of corruption. Authorities assured people they would accelerate plans to tackle the local financial crisis, reports said. The demonstration began trending on China's social media site Weibo as netizens expressed their sympathy for those who suffered due to the bank frauds. The banking scam comes amid the property crisis as the Chinese property giant Evergrande cancelled a contract to build a football stadium. Evergrande has already failed to publish a preliminary restructuring proposal after going bankrupt. Also Read: Chinese banks limit financing for Russian purchases to avoid Western sanctions Reports claimed the troubled property giant had found a potential buyer for its Hong Kong headquarters even as it reels under a massive $300 billion in liabilities. The company had fired its CEO and CFO as the company's expanding crisis severely hit the property sector. Reports claim homebuyers in some cities have also stopped making mortgage payments on unfinished projects however reports claim the Communist Party may support developers with state funding. (With inputs from Agencies) WATCH WION LIVE HERE:

Police in China arrest over 200 suspects after protests erupted over bank frauds

People of the Indian state of Bihar are startled about billions of rupees being credited to the bank accounts of two children.

On September 15, two class 6 kids, Ashish Kumar and Gurucharan Biswas received Rs 6,20,11,100 and Rs 90,52,21,223 in their bank accounts, respectively, in Katihar district.

Both children are from Bagahura Panchayat's Pastia village. Uttar Bihar Gramin Bank is where they have bank accounts.

The district magistrate of Katihar, Udayan Mishra, also acknowledged that the youngsters had received a large sum of money.&nbsp;

"Big amounts were credited to the accounts of two children. The amount can be seen in the mini statements. The senior officials of the bank are being informed, " Mishra said.

"As soon as we learnt about the money being credited in the accounts of two children, we put the accounts on hold and stopped withdrawals. When I inquired with the parents of the children, they were also unable to reveal the source of the fund. Now, we are investigating the matter to find out who is the sender, " said M.K. Madhukar, the LDM of Uttar Bihar Gramin Bank.

This is the second occasion in recent months that a large incorrect amount has been sent to a bank customer or made to appear on a bank statement in Bihar.

A guy from a village on the outskirts of Patna was sentenced to prison for failing to refund nearly Rs 5,00,000 that had been credited to his account by mistake.

The man claimed the money was government aid given by Prime Minister Narendra Modi and refused to return it to the bank.&nbsp;

(With inputs from agencies)

People of the Indian state of Bihar are startled about billions of rupees being credited to the bank accounts of two children. On September 15, two class 6 kids, Ashish Kumar and Gurucharan Biswas received Rs 6,20,11,100 and Rs 90,52,21,223 in their bank accounts, respectively, in Katihar district.

People of the Indian state of Bihar are startled about billions of rupees being credited to the bank accounts of two children. On September 15, two class 6 kids, Ashish Kumar and Gurucharan Biswas received Rs 6,20,11,100 and Rs 90,52,21,223 in their bank accounts, respectively, in Katihar district. Both children are from Bagahura Panchayat's Pastia village. Uttar Bihar Gramin Bank is where they have bank accounts. The district magistrate of Katihar, Udayan Mishra, also acknowledged that the youngsters had received a large sum of money. "Big amounts were credited to the accounts of two children. The amount can be seen in the mini statements. The senior officials of the bank are being informed, " Mishra said. "As soon as we learnt about the money being credited in the accounts of two children, we put the accounts on hold and stopped withdrawals. When I inquired with the parents of the children, they were also unable to reveal the source of the fund. Now, we are investigating the matter to find out who is the sender, " said M.K. Madhukar, the LDM of Uttar Bihar Gramin Bank. This is the second occasion in recent months that a large incorrect amount has been sent to a bank customer or made to appear on a bank statement in Bihar. A guy from a village on the outskirts of Patna was sentenced to prison for failing to refund nearly Rs 5,00,000 that had been credited to his account by mistake. The man claimed the money was government aid given by Prime Minister Narendra Modi and refused to return it to the bank. (With inputs from agencies)

Two Indian boys find over Rs 9 billion credited into their bank accounts

A federal judge on Tuesday said Citigroup Inc is not entitled to half a billion dollars of its own money that it mistakenly wired in what he called "a banking error of perhaps unprecedented nature and magnitude."

U.S. District Judge Jesse Furman in Manhattan said August&nbsp;11, 2020, wire transfers to lenders of cosmetics maker Revlon Inc at issue were "final and complete transactions, not subject to revocation."

A spokeswoman for Citigroup said the bank strongly disagrees with this decision and intends to appeal.

"We believe we are entitled to the funds and will continue to pursue a complete recovery of them," the bank said.

The case stemmed from an incident where Citigroup, acting as Revlon`s loan agent, wired $893 million to Revlon`s lenders, appearing to pay off a loan not due until 2023.

Citigroup had intended to send a $7.8 million interest payment and blamed human error for the gaffe.

Some lenders returned the money they were sent, but 10 asset managers including Brigade Capital Management, HPS Investment Partners and Symphony Asset Management refused, prompting Citigroup`s lawsuit to recoup the estimated $501 million they received.

Citigroup had argued that the lenders should return the money because they knew or should have known it made a mistake and that Revlon could not afford the payment.

But in a 101-page decision, following a six-day trial in December, Furman noted that the transfers matched "to the penny" what the lenders were owed, and said it appeared there had never been a mistake of this size before.

"The non-returning lenders believed, and were justified in believing, that the payments were intentional," Furman wrote. "To believe otherwise - to believe that Citibank, one of the most sophisticated financial institutions in the world, had made a mistake that had never happened before, to the tune of nearly $1 billion - would have been borderline irrational."

Lawyers for both parties did not immediately respond to requests for comment.

Administrative agents typically distribute interest payments and perform back-office services for clients such as Revlon.

Industry groups have said a ruling against Citigroup could expose banks to excessive liability risks.

A federal judge on Tuesday said Citigroup Inc is not entitled to half a billion dollars of its own money that it mistakenly wired in what he called "a banking error of perhaps unprecedented nature and magnitude.

A federal judge on Tuesday said Citigroup Inc is not entitled to half a billion dollars of its own money that it mistakenly wired in what he called "a banking error of perhaps unprecedented nature and magnitude." U.S. District Judge Jesse Furman in Manhattan said August 11, 2020, wire transfers to lenders of cosmetics maker Revlon Inc at issue were "final and complete transactions, not subject to revocation." A spokeswoman for Citigroup said the bank strongly disagrees with this decision and intends to appeal. "We believe we are entitled to the funds and will continue to pursue a complete recovery of them," the bank said. The case stemmed from an incident where Citigroup, acting as Revlon`s loan agent, wired $893 million to Revlon`s lenders, appearing to pay off a loan not due until 2023. Citigroup had intended to send a $7.8 million interest payment and blamed human error for the gaffe. Some lenders returned the money they were sent, but 10 asset managers including Brigade Capital Management, HPS Investment Partners and Symphony Asset Management refused, prompting Citigroup`s lawsuit to recoup the estimated $501 million they received. Citigroup had argued that the lenders should return the money because they knew or should have known it made a mistake and that Revlon could not afford the payment. But in a 101-page decision, following a six-day trial in December, Furman noted that the transfers matched "to the penny" what the lenders were owed, and said it appeared there had never been a mistake of this size before. "The non-returning lenders believed, and were justified in believing, that the payments were intentional," Furman wrote. "To believe otherwise - to believe that Citibank, one of the most sophisticated financial institutions in the world, had made a mistake that had never happened before, to the tune of nearly $1 billion - would have been borderline irrational." Lawyers for both parties did not immediately respond to requests for comment. Administrative agents typically distribute interest payments and perform back-office services for clients such as Revlon. Industry groups have said a ruling against Citigroup could expose banks to excessive liability risks.

Biggest blunder in banking history: Citibank can't get back $500 million it accidentally wired to ten companies, says US judge

Several global banks moved large sums of allegedly illicit funds -- to the tune of&nbsp;$2tn -- over a period of nearly two decades, despite red flags about the origins of the money, several media reports&nbsp;said on Monday (IST).

The reports are&nbsp;based on leaked suspicious activity reports (SARs) filed by banks and other financial firms with the US Department of Treasury's Financial Crimes Enforcement Network (FinCen).&nbsp;

Leaked documents&nbsp;also show how Russian oligarchs have used banks to avoid sanctions that were supposed to stop them getting their money into the West. They have&nbsp;exposed similar secret deals, money laundering and financial crime.

The SARs, which the reports said numbered more than 2,100, were shared with the International Consortium of Investigative Journalists (ICIJ) and other media organisations.

The FinCEN files contain a 20-page “intelligence assessment” on the mirror network and list 54 shell companies that moved billions of dollars annually from Russia through European securities markets to other jurisdictions beginning as early as 2011.

The investigation also highlighted the American authorities' lack of power in regulating dirty financial transactions.

In all, the ICIJ reported that the files contained information about more than $2 trillion worth of transactions between 1999 and 2017, which were flagged by internal compliance departments of financial institutions as suspicious. The SARs are in themselves not necessarily proof of wrongdoing, and the ICIJ reported the leaked documents were a tiny fraction of the reports filed with FinCEN.

Five global banks appeared most often in the documents — HSBC Holdings Plc, JPMorgan Chase &amp; Co, Deutsche Bank AG, Standard Chartered Plc and Bank of New York Mellon Corp, the ICIJ reported.

At least 44 Indian banks figure in the FinCEN Files primarily because they are “correspondent banks” to the foreign banks which have filed these SARs. Key in this list are Punjab National Bank, Kotak Mahindra, HDFC Bank, Canara Bank, IndusInd Bank and Bank of Baroda, among others.

The SARs provide key intelligence in global efforts to stop money laundering and other crimes. The media reports on Sunday painted a picture of a system that is both under-resourced and overwhelmed, allowing vast amounts of illicit funds to move through the banking system.

A bank has a maximum of 60 days to file SARs after the date of initial detection of a reportable transaction, according to the Treasury Department's Office of the Comptroller of the Currency. The ICIJ report said in some cases the banks failed to report suspect transactions until years after they had processed them.

The SARs also showed that banks often moved funds for companies that were registered in offshore havens, such as the British Virgin Islands, and did not know the ultimate owner of the account, the report said. Staff at major banks often used Google searches to learn who was behind large transactions, it said.

Among the types of transactions highlighted by the report: funds processed by JPMorgan for potentially corrupt individuals and companies in Venezuela, Ukraine and Malaysia; money from a Ponzi scheme moving through HSBC; and money linked to a Ukrainian billionaire processed by Deutsche Bank.

"I hope these findings spur urgent action from policymakers to enact needed reforms," said Tim Adams, chief executive of the trade group Institute of International Finance, in a statement. "As noted in today's reports, the impacts of financial crime are felt beyond just the financial sector – it poses grave threats to society as a whole."

In a statement to Reuters, HSBC said "all of the information provided by the ICIJ is historical." The bank said as of 2012, "HSBC embarked on a multi-year journey to overhaul its ability to combat financial crime across more than 60 jurisdictions."

Standard Chartered said in a statement to Reuters, "We take our responsibility to fight financial crime extremely seriously and have invested substantially in our compliance programmes."

BNY Mellon told Reuters it could not comment on specific SARs. "We fully comply with all applicable laws and regulations, and assist authorities in the important work they do," the bank said.

JPMorgan said it has "thousands of people and hundreds of millions of dollars dedicated to this important work." "We have played a leadership role in anti-money laundering reform," the bank said in a statement.

In a statement on Sunday, Deutsche Bank said the ICIJ had "reported on a number of historic issues." "We have devoted significant resources to strengthening our controls and we are very focused on meeting our responsibilities and obligations," the bank said.

FinCen said in a statement on its website on September 1 that it was aware that various media outlets intended to publish a series of articles based on unlawfully disclosed SARs, as well as other documents, and said that the "unauthorised disclosure of SARs is a crime that can impact the national security of the United States."

FinCEN&nbsp;has also uncovered a web of transactions of a flourishing money laundering network, purportedly run by Pakistani national Altaf Khanani who is also said to have been a key financier for fugitive terrorist Dawood Ibrahim.

These SARs also detail transactions of Khanani’s Money Laundering Organisation (MLO) and the Al Zarooni Exchange.

Khanani was arrested at the Panama airport -- on September 11, 2015 -- following a trans-continental undercover operation, and put behind bars in a Miami prison. His detention ended in July 2020.

He was to be handed over to US immigration authorities for deportation. But there has been no recent update on whether he has been deported to Pakistan or the UAE.

The arrest of Khanani was seen as a breakthrough by Indian intelligence agencies given the Dawood Ibrahim connection.

Also, Lashkar-e-Toiba and Jaish-e-Mohammed -- specifically mentioned by the OFAC as terror organisations -- have been being funded by him.

FinCEN’s intelligence report says Mazaka General Trading LLC received $49.78 million from five Moscow Mirror Network entities between March 2013 and October 2016.

This is also where Indian links emerged in the functioning of the Altaf Khanani laundering operation. A scrutiny of transactions of Mazaka General Trading show it traded with a New Delhi-based company, Rangoli International Pvt Limited. This company, dealing in wholesale trade and garment exports, was set up in 2009.

The FinCEN Files have around 70 transactions listed for Rangoli International, mostly with UAE-based entities with the remittances being routed through several Indian banks: the Punjab National Bank, Central Bank of India, Oriental Bank of Commerce, Corporation Bank, Vijaya Bank and Bank of Maharashtra.

Records of the Registrar of Companies (RoC) show that Rangoli International witnessed a sharp deterioration and decline in profitability in the year ending March 2014 and incurred a loss of Rs 74.87 crore over a sales revenue of Rs 339.19 crore. The company has not held an annual shareholders meeting since 2015, the year it also filed its last balance sheet.

(with inputs from agencies)

Several global banks moved large sums of allegedly illicit funds -- to the tune of $2tn -- over a period of nearly two decades, despite red flags about the origins of the money, several media reports said on Monday (IST).

Several global banks moved large sums of allegedly illicit funds -- to the tune of $2tn -- over a period of nearly two decades, despite red flags about the origins of the money, several media reports said on Monday (IST). The reports are based on leaked suspicious activity reports (SARs) filed by banks and other financial firms with the US Department of Treasury's Financial Crimes Enforcement Network (FinCen). Leaked documents also show how Russian oligarchs have used banks to avoid sanctions that were supposed to stop them getting their money into the West. They have exposed similar secret deals, money laundering and financial crime. The SARs, which the reports said numbered more than 2,100, were shared with the International Consortium of Investigative Journalists (ICIJ) and other media organisations. The FinCEN files contain a 20-page “intelligence assessment” on the mirror network and list 54 shell companies that moved billions of dollars annually from Russia through European securities markets to other jurisdictions beginning as early as 2011. The investigation also highlighted the American authorities' lack of power in regulating dirty financial transactions. In all, the ICIJ reported that the files contained information about more than $2 trillion worth of transactions between 1999 and 2017, which were flagged by internal compliance departments of financial institutions as suspicious. The SARs are in themselves not necessarily proof of wrongdoing, and the ICIJ reported the leaked documents were a tiny fraction of the reports filed with FinCEN. Five global banks appeared most often in the documents — HSBC Holdings Plc, JPMorgan Chase & Co, Deutsche Bank AG, Standard Chartered Plc and Bank of New York Mellon Corp, the ICIJ reported. At least 44 Indian banks figure in the FinCEN Files primarily because they are “correspondent banks” to the foreign banks which have filed these SARs. Key in this list are Punjab National Bank, Kotak Mahindra, HDFC Bank, Canara Bank, IndusInd Bank and Bank of Baroda, among others. The SARs provide key intelligence in global efforts to stop money laundering and other crimes. The media reports on Sunday painted a picture of a system that is both under-resourced and overwhelmed, allowing vast amounts of illicit funds to move through the banking system. A bank has a maximum of 60 days to file SARs after the date of initial detection of a reportable transaction, according to the Treasury Department's Office of the Comptroller of the Currency. The ICIJ report said in some cases the banks failed to report suspect transactions until years after they had processed them. The SARs also showed that banks often moved funds for companies that were registered in offshore havens, such as the British Virgin Islands, and did not know the ultimate owner of the account, the report said. Staff at major banks often used Google searches to learn who was behind large transactions, it said. Among the types of transactions highlighted by the report: funds processed by JPMorgan for potentially corrupt individuals and companies in Venezuela, Ukraine and Malaysia; money from a Ponzi scheme moving through HSBC; and money linked to a Ukrainian billionaire processed by Deutsche Bank. "I hope these findings spur urgent action from policymakers to enact needed reforms," said Tim Adams, chief executive of the trade group Institute of International Finance, in a statement. "As noted in today's reports, the impacts of financial crime are felt beyond just the financial sector – it poses grave threats to society as a whole." In a statement to Reuters, HSBC said "all of the information provided by the ICIJ is historical." The bank said as of 2012, "HSBC embarked on a multi-year journey to overhaul its ability to combat financial crime across more than 60 jurisdictions." Standard Chartered said in a statement to Reuters, "We take our responsibility to fight financial crime extremely seriously and have invested substantially in our compliance programmes." BNY Mellon told Reuters it could not comment on specific SARs. "We fully comply with all applicable laws and regulations, and assist authorities in the important work they do," the bank said. JPMorgan said it has "thousands of people and hundreds of millions of dollars dedicated to this important work." "We have played a leadership role in anti-money laundering reform," the bank said in a statement. In a statement on Sunday, Deutsche Bank said the ICIJ had "reported on a number of historic issues." "We have devoted significant resources to strengthening our controls and we are very focused on meeting our responsibilities and obligations," the bank said. FinCen said in a statement on its website on September 1 that it was aware that various media outlets intended to publish a series of articles based on unlawfully disclosed SARs, as well as other documents, and said that the "unauthorised disclosure of SARs is a crime that can impact the national security of the United States." FinCEN has also uncovered a web of transactions of a flourishing money laundering network, purportedly run by Pakistani national Altaf Khanani who is also said to have been a key financier for fugitive terrorist Dawood Ibrahim. These SARs also detail transactions of Khanani’s Money Laundering Organisation (MLO) and the Al Zarooni Exchange. Khanani was arrested at the Panama airport -- on September 11, 2015 -- following a trans-continental undercover operation, and put behind bars in a Miami prison. His detention ended in July 2020. He was to be handed over to US immigration authorities for deportation. But there has been no recent update on whether he has been deported to Pakistan or the UAE. The arrest of Khanani was seen as a breakthrough by Indian intelligence agencies given the Dawood Ibrahim connection. Also, Lashkar-e-Toiba and Jaish-e-Mohammed -- specifically mentioned by the OFAC as terror organisations -- have been being funded by him. FinCEN’s intelligence report says Mazaka General Trading LLC received $49.78 million from five Moscow Mirror Network entities between March 2013 and October 2016. This is also where Indian links emerged in the functioning of the Altaf Khanani laundering operation. A scrutiny of transactions of Mazaka General Trading show it traded with a New Delhi-based company, Rangoli International Pvt Limited. This company, dealing in wholesale trade and garment exports, was set up in 2009. The FinCEN Files have around 70 transactions listed for Rangoli International, mostly with UAE-based entities with the remittances being routed through several Indian banks: the Punjab National Bank, Central Bank of India, Oriental Bank of Commerce, Corporation Bank, Vijaya Bank and Bank of Maharashtra. Records of the Registrar of Companies (RoC) show that Rangoli International witnessed a sharp deterioration and decline in profitability in the year ending March 2014 and incurred a loss of Rs 74.87 crore over a sales revenue of Rs 339.19 crore. The company has not held an annual shareholders meeting since 2015, the year it also filed its last balance sheet. (with inputs from agencies)

FinCEN documents show how global banks moved illicit funds despite red flags

Some banks and companies in Nepal are allegedly involved in transferring money obtained suspiciously from oversees, an investigation made by the Center for Investigative Journalism (CIJ), Nepal along with the International Consortium of Investigative Journalists (ICIJ) and BuzzFeed has revealed.

The investigative report released on Sunday shows the involvement of Nepali companies and banks attempting to deceive US sanctions on trade especially on Iran and China. 
 
<a href="https://www.wionews.com/business-economy/fincen-documents-show-how-global-banks-moved-illicit-funds-despite-red-flags-329028">Also read | FinCEN documents show how global banks moved illicit funds despite red flags</a>

Based on a top-secret document prepared by 'Financial Crimes Enforcement Network', a government body that monitors financial transactions system in the US, the collective investigation report has been named 'FinCEN Files'.

According to 'FinCEN Files', between December 2006 and March 2017, 9 banks, 10 companies and various individuals in Nepal were found to have transacted (sent/received) suspicious funds in the name of cross-border trade.

"This shows that some Nepali business entities are linked to the international smuggling of gold, antiquities, bitumen, and telecommunication equipment. Standard Chartered Bank, Prime Commercial Bank, Bank of Kathmandu, Nepal Investment Bank, Everest Bank, Mega Bank, Himalayan Bank, Apex Development Bank of Kaski, and Nepal Bangladesh Bank are mentioned in the list of banks that are involved in transferring money suspicious," the 25 paged report based on covering Nepal stated.

FinCEN Files showed involvement of 10 Nepali companies that directly sent or received suspicious funds. As per the report, a suspicious amount of 292.7 million US Dollars has been transacted through these banks and companies during 11 years.

The report has named Rauniyar Brothers &amp; Company, SubhaSamriddhi Traders Pvt. Ltd., Shasta Trading Company, Setidevi Export Import Pvt. Ltd., L.D. International Pvt. Ltd., Felt and Yarn Pvt. Ltd., Woman's Paper Crafts, Acme Money Transfer Service, and Sunny Enterprises as the companies allegedly involved in suspicious cross-border transactions.

Amongst the companies, Rauniyar Brothers &amp; Company, Shubha Shambridhi Traders, Private Limited, based in Parsa District of Nepal have allegedly conducted suspicious transactions via a Dubai based company called 'Kite International FZE,' whose main business into import and export petroleum products such bitumen, engine oil for vehicles, lubricants, and rubber processing oil.

"Through these dubious Dubai based companies, the Rauniyar family has traded and transferred suspicious money in the name of import and export of bitumen and petroleum products in Nepal. Rauniyar Brothers and Shubha Shambridhi Traders have repeatedly opened Letters of Credit (LC) from Standard Chartered Bank of Kathmandu between September 28, 2010, and September 4, 2014. During these four years, these two companies have sent payments of 71.4 million US Dollars to different countries, including Dubai," the report revealed.

Further adding, "FinCEN has pointed out sensitive facts about these companies. Rauniyar's company brought the goods from Iran-a country where the United States has imposed a trade ban. However, the documents have been forged to show that the goods have been imported from Dubai".

During the investigation, Nepal's Investigative Journalists tried to get a response from Kite via email but didn't receive any reply. But the team of investigative journalists found that 'Kite International FZE' stationed in Kenya, Zambia, Mozambique, Nepal and the United States also has launched "a new project for higher education in Nepal" over its website. But no official record is available for the project thus claimed.

Narayanji Rauniyar, one of the directors of two companies, whose link has been established with Kite, said that both his companies are currently closed. "There is no company now. It's been four or five years since it was shut down," the report quoted him as saying.

"We used to import bitumen, but we don't anymore," he added. FinCEN stated that his son, Prakash Kumar Rauniyar, was the mastermind behind the business. Narayanji said that he was abroad and would give his phone number but that did not happen. Both the Rauniyar Brothers &amp; Company, SubhaSamriddhi Traders Pvt. Ltd. are registered with the name of Narayan Ji Rauniyar of Birgunj and his four sons - ShyamBabu, JyotiBabu, Prakash Kumar, and Deep Kumar Babu.

Bonding between a Nepali Bank and ZTE

According to FinCEN, Zhongxing Telecommunication Equipment (ZTE) Corporation, China's largest telecommunications service provider company, remitted 213.3 million US Dollars to other countries, including Nepal, from March 17, 2011, to March 1, 2017.

ZTE had done the transaction through Beijing-based China Construction Bank. The US-based New York branch of China Construction Bank had discovered that the transacted amount was suspicious.

In the duration of three years and four months from November 4, 2013, to February 27, 2017, ZTE was found to have deposited some amount in Nepal Investment Bank, according to 'FinCEN'.

In the description, four separate amounts: $5,709.09, $5,244.76, $40,357.75 and $10 are found to be deposited by ZTE Corporation in Nepal Investment Bank, Kathmandu.

According to FinCEN, citing various media outlets, the five-year-long investigation mentioned "several conspiracies" that the ZTE created to evade US sanctions. The company "makes the purchase of telecommunications equipment from the United States and sells it illegally to Iran as ZTE's equipment." According to FinCEN, the ZTE traded suspicious funds in various countries to deceive regulating bodies against US sanctions.

ZTE is one of the leading exporters of telecommunication equipment in Nepal. Soon after the Gorkha Earthquake of 2072 B.S, ZTE was importing materials for constructing a tower for Ncell-a telecommunication company based in Nepal.

The purpose of the import was commercial, but it intended to bypass customs duty, where it tried to bring goods by sticking Red Cross stickers on the imported goods. After it was discovered during the customs inspection, ZTE had to pay 10.1 million rupees to release its goods.

"BijendraSuwal, Deputy General Manager of Nepal Investment Bank, said that the so-called suspicious documents should be sent for the response. He said that the bank could not disclose the relationship between the bank and the customer as per the Banking and Financial Institutions Act, 2073 BS," the report stated.

"Due to a lack of proper evidence, we are unable to disclose information about our customers owing to privacy obligations," Suwal has been quoted in a report which the group of Investigative Journalists received as an email reply.

There was no response from the ZTE on the report.

Some banks and companies in Nepal are allegedly involved in transferring money obtained suspiciously from oversees, an investigation made by the Center for Investigative Journalism (CIJ), Nepal along with the International Consortium of Investigative Journalists (ICIJ) and BuzzFeed has revealed.

Some banks and companies in Nepal are allegedly involved in transferring money obtained suspiciously from oversees, an investigation made by the Center for Investigative Journalism (CIJ), Nepal along with the International Consortium of Investigative Journalists (ICIJ) and BuzzFeed has revealed. The investigative report released on Sunday shows the involvement of Nepali companies and banks attempting to deceive US sanctions on trade especially on Iran and China. Also read | FinCEN documents show how global banks moved illicit funds despite red flags Based on a top-secret document prepared by 'Financial Crimes Enforcement Network', a government body that monitors financial transactions system in the US, the collective investigation report has been named 'FinCEN Files'. According to 'FinCEN Files', between December 2006 and March 2017, 9 banks, 10 companies and various individuals in Nepal were found to have transacted (sent/received) suspicious funds in the name of cross-border trade. "This shows that some Nepali business entities are linked to the international smuggling of gold, antiquities, bitumen, and telecommunication equipment. Standard Chartered Bank, Prime Commercial Bank, Bank of Kathmandu, Nepal Investment Bank, Everest Bank, Mega Bank, Himalayan Bank, Apex Development Bank of Kaski, and Nepal Bangladesh Bank are mentioned in the list of banks that are involved in transferring money suspicious," the 25 paged report based on covering Nepal stated. FinCEN Files showed involvement of 10 Nepali companies that directly sent or received suspicious funds. As per the report, a suspicious amount of 292.7 million US Dollars has been transacted through these banks and companies during 11 years. The report has named Rauniyar Brothers & Company, SubhaSamriddhi Traders Pvt. Ltd., Shasta Trading Company, Setidevi Export Import Pvt. Ltd., L.D. International Pvt. Ltd., Felt and Yarn Pvt. Ltd., Woman's Paper Crafts, Acme Money Transfer Service, and Sunny Enterprises as the companies allegedly involved in suspicious cross-border transactions. Amongst the companies, Rauniyar Brothers & Company, Shubha Shambridhi Traders, Private Limited, based in Parsa District of Nepal have allegedly conducted suspicious transactions via a Dubai based company called 'Kite International FZE,' whose main business into import and export petroleum products such bitumen, engine oil for vehicles, lubricants, and rubber processing oil. "Through these dubious Dubai based companies, the Rauniyar family has traded and transferred suspicious money in the name of import and export of bitumen and petroleum products in Nepal. Rauniyar Brothers and Shubha Shambridhi Traders have repeatedly opened Letters of Credit (LC) from Standard Chartered Bank of Kathmandu between September 28, 2010, and September 4, 2014. During these four years, these two companies have sent payments of 71.4 million US Dollars to different countries, including Dubai," the report revealed. Further adding, "FinCEN has pointed out sensitive facts about these companies. Rauniyar's company brought the goods from Iran-a country where the United States has imposed a trade ban. However, the documents have been forged to show that the goods have been imported from Dubai". During the investigation, Nepal's Investigative Journalists tried to get a response from Kite via email but didn't receive any reply. But the team of investigative journalists found that 'Kite International FZE' stationed in Kenya, Zambia, Mozambique, Nepal and the United States also has launched "a new project for higher education in Nepal" over its website. But no official record is available for the project thus claimed. Narayanji Rauniyar, one of the directors of two companies, whose link has been established with Kite, said that both his companies are currently closed. "There is no company now. It's been four or five years since it was shut down," the report quoted him as saying. "We used to import bitumen, but we don't anymore," he added. FinCEN stated that his son, Prakash Kumar Rauniyar, was the mastermind behind the business. Narayanji said that he was abroad and would give his phone number but that did not happen. Both the Rauniyar Brothers & Company, SubhaSamriddhi Traders Pvt. Ltd. are registered with the name of Narayan Ji Rauniyar of Birgunj and his four sons - ShyamBabu, JyotiBabu, Prakash Kumar, and Deep Kumar Babu. Bonding between a Nepali Bank and ZTE According to FinCEN, Zhongxing Telecommunication Equipment (ZTE) Corporation, China's largest telecommunications service provider company, remitted 213.3 million US Dollars to other countries, including Nepal, from March 17, 2011, to March 1, 2017. ZTE had done the transaction through Beijing-based China Construction Bank. The US-based New York branch of China Construction Bank had discovered that the transacted amount was suspicious. In the duration of three years and four months from November 4, 2013, to February 27, 2017, ZTE was found to have deposited some amount in Nepal Investment Bank, according to 'FinCEN'. In the description, four separate amounts: $5,709.09, $5,244.76, $40,357.75 and $10 are found to be deposited by ZTE Corporation in Nepal Investment Bank, Kathmandu. According to FinCEN, citing various media outlets, the five-year-long investigation mentioned "several conspiracies" that the ZTE created to evade US sanctions. The company "makes the purchase of telecommunications equipment from the United States and sells it illegally to Iran as ZTE's equipment." According to FinCEN, the ZTE traded suspicious funds in various countries to deceive regulating bodies against US sanctions. ZTE is one of the leading exporters of telecommunication equipment in Nepal. Soon after the Gorkha Earthquake of 2072 B.S, ZTE was importing materials for constructing a tower for Ncell-a telecommunication company based in Nepal. The purpose of the import was commercial, but it intended to bypass customs duty, where it tried to bring goods by sticking Red Cross stickers on the imported goods. After it was discovered during the customs inspection, ZTE had to pay 10.1 million rupees to release its goods. "BijendraSuwal, Deputy General Manager of Nepal Investment Bank, said that the so-called suspicious documents should be sent for the response. He said that the bank could not disclose the relationship between the bank and the customer as per the Banking and Financial Institutions Act, 2073 BS," the report stated. "Due to a lack of proper evidence, we are unable to disclose information about our customers owing to privacy obligations," Suwal has been quoted in a report which the group of Investigative Journalists received as an email reply. There was no response from the ZTE on the report.

Nepal banks and companies helping China, Iran skirt US sanctions: FinCEN Files

An Indian-American president of a now-defunct New Jersey-based marble and granite wholesaler has admitted his role in scheming to defraud a bank in connection with a USD17 million secured line of credit, a US Attorney has said.

Rajendra Kankariya, 61, pleaded guilty by video conference before US District Judge Susan D. Wigenton to committing wire fraud affecting a financial institution.

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President and Chief Financial Officer of New Jersey Company Charged with $17 Million Fraud Scheme: Rajendra Kankariya and Rakesh Sethi have been arrested for allegedly orchestrating and participating in a scheme to defraud a bank. <a href="https://t.co/h5x8j9T5UF">https://t.co/h5x8j9T5UF</a>
— FBI Newark (@FBINewark) <a href="https://twitter.com/FBINewark/status/1204611827100876801?ref_src=twsrc%5Etfw">December 11, 2019</a></blockquote>
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He faces a maximum penalty of 30 years in prison and a fine of USD1 million. Kankariya is scheduled to be sentenced on January 18. 
According to court documents, from March 2016 through March 2018, Kankariya, the president and part owner of Lotus Exim International Inc, conspired with other LEI employees to obtain from the bank a USD17 million line of credit by fraudulent means.

The bank extended the line of credit believing it to have been secured in part by LEI's accounts receivable. In reality, Kankariya and his conspirators fabricated or inflated many of the accounts receivable, ultimately leading to LEI defaulting on the line of credit, prosecutors alleged.

To conceal the lack of sufficient collateral, LEI employees, with the knowledge and approval of Kankariya, created fake email addresses on behalf of LEI's customers so they could pose as them and answer the bank's and outside auditor's inquiries about the accounts receivable.

The scheme involved numerous fraudulent accounts receivable where the outstanding balances were either inflated or entirely fabricated. The scheme caused the bank losses of about USD17 million, a statement issued by US Attorney Craig Carpenito said.

An Indian-American president of a now-defunct New Jersey-based marble and granite wholesaler has admitted his role in scheming to defraud a bank in connection with a USD17 million secured line of credit, a US Attorney has said.

An Indian-American president of a now-defunct New Jersey-based marble and granite wholesaler has admitted his role in scheming to defraud a bank in connection with a USD17 million secured line of credit, a US Attorney has said. Rajendra Kankariya, 61, pleaded guilty by video conference before US District Judge Susan D. Wigenton to committing wire fraud affecting a financial institution. President and Chief Financial Officer of New Jersey Company Charged with $17 Million Fraud Scheme: Rajendra Kankariya and Rakesh Sethi have been arrested for allegedly orchestrating and participating in a scheme to defraud a bank. https://t.co/h5x8j9T5UF — FBI Newark (@FBINewark) December 11, 2019 × He faces a maximum penalty of 30 years in prison and a fine of USD1 million. Kankariya is scheduled to be sentenced on January 18. According to court documents, from March 2016 through March 2018, Kankariya, the president and part owner of Lotus Exim International Inc, conspired with other LEI employees to obtain from the bank a USD17 million line of credit by fraudulent means. The bank extended the line of credit believing it to have been secured in part by LEI's accounts receivable. In reality, Kankariya and his conspirators fabricated or inflated many of the accounts receivable, ultimately leading to LEI defaulting on the line of credit, prosecutors alleged. To conceal the lack of sufficient collateral, LEI employees, with the knowledge and approval of Kankariya, created fake email addresses on behalf of LEI's customers so they could pose as them and answer the bank's and outside auditor's inquiries about the accounts receivable. The scheme involved numerous fraudulent accounts receivable where the outstanding balances were either inflated or entirely fabricated. The scheme caused the bank losses of about USD17 million, a statement issued by US Attorney Craig Carpenito said.

Indian-American pleads guilty in $17 million bank fraud

Police in Nepal have detained 122 Chinese nationals in its biggest crackdown on crime by foreigners entering the country on a tourist visa, officials said on Tuesday.

The chief of police in the capital, Kathmandu, Uttam Subedi, said 122 Chinese men and women were rounded up in raids on Monday following information that they were engaged in suspicious activities.

The Chinese are suspected of carrying out<a href="https://www.wionews.com/india-news/cyber-crime-becoming-industry-may-occur-very-often-rajnath-singh-35769"> cybercrime </a>and hacking into bank cash machines, Subedi said, adding that they were being held in different police stations and their passports and laptop computers had been seized.

"This is the first time that so many foreigners have been detained for suspected criminal activities," he said.

Chinese embassy officials were not immediately available for comment but another senior police officer, Hobindra Bogati, said the embassy knew of the raids and had supported the detention of the suspects.

Chinese people are regularly detained in Asian countries on suspicion of involvement in various illegal activities, often involving fraud back in China.

Last week, authorities in the Philippines arrested 342 <a href="https://www.wionews.com/world/underperforming-chinese-workers-made-to-drink-urine-eat-bugs-176165">Chinese workers</a> in a raid on an unlicensed gambling operation.

In September, police arrested five Chinese nationals on a charge of stealing money by hacking bank cash machines. Chinese citizens were also arrested with smuggled gold this year.

Nepal and China signed a treaty on mutual assistance in criminal matters during a visit to Nepal by President <a href="https://www.wionews.com/americas/donald-trump-xi-jinping-and-trade-a-high-stakes-game-of-chicken-216697">Xi Jinping</a> in October.

China has been increasing its investment in Nepal in recent years in areas such as roads, power plants, and hospitals.

More than 134,000 Chinese tourists visited Nepal between January and October this year, up 9.2 per cent from the same period in 2018, according to Nepal Tourism Board data.

Police in Nepal have detained 122 Chinese nationals in its biggest crackdown on crime by foreigners entering the country on a tourist visa, officials said on Tuesday.

Police in Nepal have detained 122 Chinese nationals in its biggest crackdown on crime by foreigners entering the country on a tourist visa, officials said on Tuesday. The chief of police in the capital, Kathmandu, Uttam Subedi, said 122 Chinese men and women were rounded up in raids on Monday following information that they were engaged in suspicious activities. The Chinese are suspected of carrying out cybercrime and hacking into bank cash machines, Subedi said, adding that they were being held in different police stations and their passports and laptop computers had been seized. "This is the first time that so many foreigners have been detained for suspected criminal activities," he said. Chinese embassy officials were not immediately available for comment but another senior police officer, Hobindra Bogati, said the embassy knew of the raids and had supported the detention of the suspects. Chinese people are regularly detained in Asian countries on suspicion of involvement in various illegal activities, often involving fraud back in China. Last week, authorities in the Philippines arrested 342 Chinese workers in a raid on an unlicensed gambling operation. In September, police arrested five Chinese nationals on a charge of stealing money by hacking bank cash machines. Chinese citizens were also arrested with smuggled gold this year. Nepal and China signed a treaty on mutual assistance in criminal matters during a visit to Nepal by President Xi Jinping in October. China has been increasing its investment in Nepal in recent years in areas such as roads, power plants, and hospitals. More than 134,000 Chinese tourists visited Nepal between January and October this year, up 9.2 per cent from the same period in 2018, according to Nepal Tourism Board data.

Nepal detains 122 Chinese nationals over suspected cyber crime, bank fraud

In a major operation, Central Bureau of Investigation (CBI) is carrying out searches at 169 places across the country as part investigation into bank fraud cases.

The searches are being carried out in Andhra Pradesh, Chandigarh, Delhi, Gujarat, Haryana, Karnataka, Kerala, MP, Maharashtra, Punjab, Tamil Nadu, Telengana, UP, Uttarakhand, Dadra and Nagar Haveli.

CBI has registered around 35 Cases related to Bank frauds involving more than Rs 7000 crore.

Further details are awaited.&nbsp; 
&nbsp;

In a major operation, Central Bureau of Investigation (CBI) is carrying out searches at 169 places across the country as part investigation into bank fraud cases.

In a major operation, Central Bureau of Investigation (CBI) is carrying out searches at 169 places across the country as part investigation into bank fraud cases. The searches are being carried out in Andhra Pradesh, Chandigarh, Delhi, Gujarat, Haryana, Karnataka, Kerala, MP, Maharashtra, Punjab, Tamil Nadu, Telengana, UP, Uttarakhand, Dadra and Nagar Haveli. CBI has registered around 35 Cases related to Bank frauds involving more than Rs 7000 crore. Further details are awaited.

CBI registers bank fraud cases worth over Rs 7000 crore

So, it's all good to blame the system and live in denial, the most important question is - what should be done to resolve the crisis in the PMC 
&nbsp;Bank?

Whatever the government does now, will amount to only damage control. But what should the government do?

On the WION edit, we will explore this question.

Bore we discuss the possible solutions, it should be underlined that blaming the previous government is not a solution.&nbsp;

For 11 years, the fraud has gone unnoticed by the regulator - RBI and the governments - both UPA and NDA.

Trying to score political points out of it will only increase public anger. Because it's not the politicians who have lost their personal savings, it's the people.

So blame game is not the way forward. For no fault of their, the depositors of PMC bank are bearing the brunt. 
 
First, the central government, the state government and the RBI must ensure that the depositors get their money back at the earliest.

This is not public service, all these three parties are involved in this mess. The state regulator of Maharashtra,&nbsp;the central government and the banking regulator.

Second, check the other top cooperative banks. If this bank could be held hostage by bad loans to one corporate house, what about the other banks?

It's important to know the scale of the problem to address it. The worry is - such bad practices could be the norm in other co-operative banks too.

Third, force the Reserve Bank of India to ensure that projects are checked thoroughly before giving out loans. This is a double-edged sword. Already, economic growth has slowed down. Lending is essential to revive the economy.

But indiscriminate lending once again will place India's banking sector in deep, deep trouble. The government should chart out ways to solve this dilemma instead of passing the blame on the previous governments.

Fourth, punish the bankers of PMC bank and the auditors too. It's inconceivable that this scam continued without the full backing of auditors.

Finally, it's time to make the insolvency and bankruptcy proceedings more efficient and faster. That's the only way to get money back from the corporate.

Better transparency in the banking sector as a whole is the solution. Swift resolution is the need of the hour. At some stage, the government has to merge or liquidate this bank.

(Disclaimer: WION Edit is the channel's take on the big events of the world)

 
&nbsp;

So, it's all good to blame the system and live in denial, the most important question is - what should be done to resolve the crisis in the PMC Bank? Whatever the government does now, will amount to only damage control.

So, it's all good to blame the system and live in denial, the most important question is - what should be done to resolve the crisis in the PMC Bank? Whatever the government does now, will amount to only damage control. But what should the government do? On the WION edit, we will explore this question. Bore we discuss the possible solutions, it should be underlined that blaming the previous government is not a solution. For 11 years, the fraud has gone unnoticed by the regulator - RBI and the governments - both UPA and NDA. Trying to score political points out of it will only increase public anger. Because it's not the politicians who have lost their personal savings, it's the people. So blame game is not the way forward. For no fault of their, the depositors of PMC bank are bearing the brunt. First, the central government, the state government and the RBI must ensure that the depositors get their money back at the earliest. This is not public service, all these three parties are involved in this mess. The state regulator of Maharashtra, the central government and the banking regulator. Second, check the other top cooperative banks. If this bank could be held hostage by bad loans to one corporate house, what about the other banks? It's important to know the scale of the problem to address it. The worry is - such bad practices could be the norm in other co-operative banks too. Third, force the Reserve Bank of India to ensure that projects are checked thoroughly before giving out loans. This is a double-edged sword. Already, economic growth has slowed down. Lending is essential to revive the economy. But indiscriminate lending once again will place India's banking sector in deep, deep trouble. The government should chart out ways to solve this dilemma instead of passing the blame on the previous governments. Fourth, punish the bankers of PMC bank and the auditors too. It's inconceivable that this scam continued without the full backing of auditors. Finally, it's time to make the insolvency and bankruptcy proceedings more efficient and faster. That's the only way to get money back from the corporate. Better transparency in the banking sector as a whole is the solution. Swift resolution is the need of the hour. At some stage, the government has to merge or liquidate this bank. (Disclaimer: WION Edit is the channel's take on the big events of the world)

WION Edit: PMC bank scam - transparency in banking sector must be improved

Every person who is facing any sort of accusations is presumed innocent until a court of law pronounces him guilty, said fugitive diamantaire Mehul Choksi's lawyer in an official statement on Thursday.

The advocate's statement comes after Antigua and Barbuda <a href="https://www.wionews.com/india-news/mehul-choksi-will-be-extradited-antigua-pm-252096">Prime Minister Gaston Browne</a> told ANI that Choksi would be extradited after he exhausts all his appeals in the country.

Watch Video:&nbsp;Antigua PM: Mehul Choksi will be extradited to India

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"My client Mehul Choksi is a law-abiding citizen. He left India for his medical treatment and at that time there were no CBI or ED criminal proceedings pending against him nor was there anything conceived against him. He is exercising various legal remedies available in law," lawyer Vijay Aggarwal stated.

"He is not able to travel back to India due to serious health concerns. He has availed legal remedies available under Antiguan law also. Every person who is facing any sort of accusations is presumed innocent until a court of law pronounces him guilty. He is entitled to avail of all legal remedies. He shall prove his innocence in due course of time," he added.

Speaking to ANI, Browne had said that "Indian authorities have the 'right'&nbsp;to come to Antigua and Barbuda to interrogate him.

They can come and if they wish to interview Choksi based on his willingness to participate, it has nothing to do with the Antiguan government.

Browne stated, "I can assure you that he will be ultimately deported after exhausting all his appeals. He will be extradited back to India to face whatever charges against him. It is just a matter of time."

Browne said that it is "unfortunate" that Choksi was cleared by Indian officials as a person in "good standing" only to be told later that he is a "crook".

"In any case, our officials acted based on the information from India and made him a citizen, the Indian officials have to take the responsibility for that situation," he said.

Choksi and his nephew <a href="https://www.wionews.com/india-news/london-westminster-court-remands-nirav-modi-to-judicial-custody-till-september-19-244793">Nirav Modi</a>, who both fled the country a year ago, are key accused in the $2 billion PNB fraud case.

Choksi was granted citizenship of Antigua and Barbuda on January 15, 2018.

On June 17, Choksi had submitted an affidavit in the Bombay High Court, stating that he is residing in Antigua and was willing to co-operate in the investigation into the PNB scam.

Every person who is facing any sort of accusations is presumed innocent until a court of law pronounces him guilty, said fugitive diamantaire Mehul Choksi's lawyer in an official statement on Thursday.

Every person who is facing any sort of accusations is presumed innocent until a court of law pronounces him guilty, said fugitive diamantaire Mehul Choksi's lawyer in an official statement on Thursday. The advocate's statement comes after Antigua and Barbuda Prime Minister Gaston Browne told ANI that Choksi would be extradited after he exhausts all his appeals in the country. Watch Video: Antigua PM: Mehul Choksi will be extradited to India × "My client Mehul Choksi is a law-abiding citizen. He left India for his medical treatment and at that time there were no CBI or ED criminal proceedings pending against him nor was there anything conceived against him. He is exercising various legal remedies available in law," lawyer Vijay Aggarwal stated. "He is not able to travel back to India due to serious health concerns. He has availed legal remedies available under Antiguan law also. Every person who is facing any sort of accusations is presumed innocent until a court of law pronounces him guilty. He is entitled to avail of all legal remedies. He shall prove his innocence in due course of time," he added. Speaking to ANI, Browne had said that "Indian authorities have the 'right' to come to Antigua and Barbuda to interrogate him. They can come and if they wish to interview Choksi based on his willingness to participate, it has nothing to do with the Antiguan government. Browne stated, "I can assure you that he will be ultimately deported after exhausting all his appeals. He will be extradited back to India to face whatever charges against him. It is just a matter of time." Browne said that it is "unfortunate" that Choksi was cleared by Indian officials as a person in "good standing" only to be told later that he is a "crook". "In any case, our officials acted based on the information from India and made him a citizen, the Indian officials have to take the responsibility for that situation," he said. Choksi and his nephew Nirav Modi, who both fled the country a year ago, are key accused in the $2 billion PNB fraud case. Choksi was granted citizenship of Antigua and Barbuda on January 15, 2018. On June 17, Choksi had submitted an affidavit in the Bombay High Court, stating that he is residing in Antigua and was willing to co-operate in the investigation into the PNB scam.

Every person facing accusations presumed innocent until proven guilty: Choksi's lawyer

The&nbsp;Enforcement Directorate (ED) on Tuesday arrested&nbsp;<a href="https://www.wionews.com/india-news/vvip-choppers-mp-cm-kamal-naths-nephew-appears-before-ed-207853">Ratul Puri</a>, nephew of Madhya Pradesh Chief Minister Kamal Nath,&nbsp;in connection with a bank fraud case worth Rs 354 crore filed by Central Bank of India.

The ED's action came three days after the Central Bureau of Investigation (CBI) registered a case against Puri, his company, his father and Managing Director Deepak Puri, Directors Nita Puri (Ratul's mother and Kamal Nath's sister), Sanjay Jain and Vineet Sharma for alleged criminal conspiracy, cheating, forgery and corruption.

The CBI on Sunday had also carried out searches at six locations, including the residences and offices of the accused directors.

The case against Ratul Puri pertains to alleged irregularities in the purchase of 12 VVIP choppers from Italy-based firm AgustaWestland.&nbsp;

The deal was scrapped by the NDA government in 2014 over the alleged breach of contractual obligations and charges of payment of kickbacks for securing the deal.

(With inputs from agencies)

The Enforcement Directorate (ED) on Tuesday arrested Ratul Puri, nephew of Madhya Pradesh Chief Minister Kamal Nath, in connection with a bank fraud case worth Rs 354 crore filed by Central Bank of India.

The Enforcement Directorate (ED) on Tuesday arrested Ratul Puri, nephew of Madhya Pradesh Chief Minister Kamal Nath, in connection with a bank fraud case worth Rs 354 crore filed by Central Bank of India. The ED's action came three days after the Central Bureau of Investigation (CBI) registered a case against Puri, his company, his father and Managing Director Deepak Puri, Directors Nita Puri (Ratul's mother and Kamal Nath's sister), Sanjay Jain and Vineet Sharma for alleged criminal conspiracy, cheating, forgery and corruption. The CBI on Sunday had also carried out searches at six locations, including the residences and offices of the accused directors. The case against Ratul Puri pertains to alleged irregularities in the purchase of 12 VVIP choppers from Italy-based firm AgustaWestland. The deal was scrapped by the NDA government in 2014 over the alleged breach of contractual obligations and charges of payment of kickbacks for securing the deal. (With inputs from agencies)

AgustaWestland case: MP CM Kamal Nath's nephew Ratul Puri arrested by ED in Rs 354 crore bank fraud case

The Allahabad Bank on Saturday became the second Indian state-owned bank to report a major alleged fraud by bankrupt steelmaker Bhushan Power &amp; Steel Ltd this month, adding to concerns about a banking industry burdened with bad debts.

Allahabad Bank said in a statement that it had told the Reserve Bank of India (RBI) that it had identified a fraud worth $259 million in Bhushan's accounts.

On July 6, state-run Punjab National Bank (PNB) said it had reported an alleged fraud of $554.6 million in the steelmaker's accounts.

"It has been observed that the company has misappropriated bank funds, manipulated books of accounts to raise funds from consortium lender banks," Allahabad Bank said in its statement, adding that it had made provisions of about $131 million against the bank's exposure.

Bhushan Power &amp; Steel, one of India's most indebted companies, was among the first 12 companies referred by the RBI to a bankruptcy court for a debt resolution process under India's new insolvency law.

Prime Minister Narendra Modi's government introduced new bankruptcy resolution rules in 2016 to help with faster resolution of bad loans, but litigation has tied down some big restructuring deals.

To revive the banking sector the Indian government has injected about $36 billion of taxpayers' money into the banks in the past five years and initiated an asset quality review by the central bank.

Only about 5% of the stressed assets of banks have so far been dealt with through the bankruptcy process.

Bhushan Power &amp; Steel could not be immediately reached for comment on the latest allegation.

The Allahabad Bank on Saturday became the second Indian state-owned bank to report a major alleged fraud by bankrupt steelmaker Bhushan Power & Steel Ltd this month, adding to concerns about a banking industry burdened with bad debts.

The Allahabad Bank on Saturday became the second Indian state-owned bank to report a major alleged fraud by bankrupt steelmaker Bhushan Power & Steel Ltd this month, adding to concerns about a banking industry burdened with bad debts. Allahabad Bank said in a statement that it had told the Reserve Bank of India (RBI) that it had identified a fraud worth $259 million in Bhushan's accounts. On July 6, state-run Punjab National Bank (PNB) said it had reported an alleged fraud of $554.6 million in the steelmaker's accounts. "It has been observed that the company has misappropriated bank funds, manipulated books of accounts to raise funds from consortium lender banks," Allahabad Bank said in its statement, adding that it had made provisions of about $131 million against the bank's exposure. Bhushan Power & Steel, one of India's most indebted companies, was among the first 12 companies referred by the RBI to a bankruptcy court for a debt resolution process under India's new insolvency law. Prime Minister Narendra Modi's government introduced new bankruptcy resolution rules in 2016 to help with faster resolution of bad loans, but litigation has tied down some big restructuring deals. To revive the banking sector the Indian government has injected about $36 billion of taxpayers' money into the banks in the past five years and initiated an asset quality review by the central bank. Only about 5% of the stressed assets of banks have so far been dealt with through the bankruptcy process. Bhushan Power & Steel could not be immediately reached for comment on the latest allegation.

Allahabad Bank reports $259 million alleged fraud by Bhushan Power & Steel

A UK judge who ordered <a href="http://www.wionews.com/india-news/regret-being-in-situation-could-have-done-something-more-productive-with-my-time-mallya-182983">Vijay Mallya's extradition</a> on Monday was extremely critical of some procedures followed by Indian banks who "waved through" the loans to the former Kingfisher Airlines boss.

Judge Emma Arbuthnot, Chief Magistrate at Westminster Magistrates' Court in London, ruled that the 62-year-old businessman had a prima facie case of fraud and money laundering to answer and expressed her shock at the failure to obtain proper credit reports before certain loans were sanctioned by some of the Indian state-owned banks.

"There was a failure to ensure that the guarantees were formally taken when they should have been and a failure to investigate the representations that KFA [Kingfisher Airlines] made at various stages to obtain the loans," she said.

The judge described these as "continuing failures" by banks and said it remained unclear from the evidence before her if these were by design and with a hidden financial motive.

"Or it is a case of a bank who were in the thrall of this glamorous, flashy, famous, bejewelled, bodyguarded, ostensibly billionaire playboy who charmed and cajoled these bankers into losing their common sense and persuading them to put their own rules and regulations to one side," she said, in one of her most critical statements in the judgment.

"If the criteria for lending to KFA had been applied, if the background checks had been carried out, the loans should not have been granted," she noted.

In an indication that some bank employees may have been involved in a wider conspiracy, the judge concluded she did find a prima facie case of a conspiracy to defraud which involves not just the KFA executives but also some bankers at IDBI who were named in the Indian government case.

"Conspiracies are very rarely proved with direct evidence and there is none in this case but there is evidence that the GOI [government of India] relies on from which it says the court can draw inferences that the bankers were involved in a conspiracy with KFA," the judgement noted.

A UK judge who ordered Vijay Mallya's extradition on Monday was extremely critical of some procedures followed by Indian banks who "waved through" the loans to the former Kingfisher Airlines boss.

A UK judge who ordered Vijay Mallya's extradition on Monday was extremely critical of some procedures followed by Indian banks who "waved through" the loans to the former Kingfisher Airlines boss. Judge Emma Arbuthnot, Chief Magistrate at Westminster Magistrates' Court in London, ruled that the 62-year-old businessman had a prima facie case of fraud and money laundering to answer and expressed her shock at the failure to obtain proper credit reports before certain loans were sanctioned by some of the Indian state-owned banks. "There was a failure to ensure that the guarantees were formally taken when they should have been and a failure to investigate the representations that KFA [Kingfisher Airlines] made at various stages to obtain the loans," she said. The judge described these as "continuing failures" by banks and said it remained unclear from the evidence before her if these were by design and with a hidden financial motive. "Or it is a case of a bank who were in the thrall of this glamorous, flashy, famous, bejewelled, bodyguarded, ostensibly billionaire playboy who charmed and cajoled these bankers into losing their common sense and persuading them to put their own rules and regulations to one side," she said, in one of her most critical statements in the judgment. "If the criteria for lending to KFA had been applied, if the background checks had been carried out, the loans should not have been granted," she noted. In an indication that some bank employees may have been involved in a wider conspiracy, the judge concluded she did find a prima facie case of a conspiracy to defraud which involves not just the KFA executives but also some bankers at IDBI who were named in the Indian government case. "Conspiracies are very rarely proved with direct evidence and there is none in this case but there is evidence that the GOI [government of India] relies on from which it says the court can draw inferences that the bankers were involved in a conspiracy with KFA," the judgement noted.

UK judge critical of Indian banks in Mallya extradition case

The Enforcement Directorate Friday moved a special court here to get the owners of Gujarat-based Sterling Biotech group, charged in an alleged Rs 8,100-crore bank loan fraud case, declared fugitive economic offenders under a new law, officials said.

They said the central agency has filed a plea before a special court of the Prevention of Money Laundering Act (PMLA), seeking to declare Nitin Sandesara, Chetan Sandesara, Dipti Sandesara and Hitesh Patel fugitives under Section 4 of the Fugitive Economic Offenders Act, brought by the Modi government this year to check cases of large bank frauds and similar crimes.

"All the four are promoters of the Sterling Group and have fled the country to avoid criminal probe against them in a Rs 8,100-crore bank loan fraud involving a consortium of banks," a senior official said.

The agency has also sought confiscation of the assets worth over Rs 5,000 crore of the Vadodara-based business family as part of the action under the fugitive law.

The agency has filed a fresh chargesheet in this case, under the PMLA, early this week and had charged the Sandesaras and others with money laundering and siphoning bank loans.

While the Sandesaras are reported to be based in Nigeria, Patel is said to be in the US.

The agency will also move for their extradition soon, they said.

The ED had made similar pleas, under the new fugitive law, against Vijay Mallya and diamond jewellers Nirav Modi and Mehul Choksi in separate bank loan money laundering probes.

The Enforcement Directorate Friday moved a special court here to get the owners of Gujarat-based Sterling Biotech group, charged in an alleged Rs 8,100-crore bank loan fraud case, declared fugitive economic offenders under a new law, officials said.

The Enforcement Directorate Friday moved a special court here to get the owners of Gujarat-based Sterling Biotech group, charged in an alleged Rs 8,100-crore bank loan fraud case, declared fugitive economic offenders under a new law, officials said. They said the central agency has filed a plea before a special court of the Prevention of Money Laundering Act (PMLA), seeking to declare Nitin Sandesara, Chetan Sandesara, Dipti Sandesara and Hitesh Patel fugitives under Section 4 of the Fugitive Economic Offenders Act, brought by the Modi government this year to check cases of large bank frauds and similar crimes. "All the four are promoters of the Sterling Group and have fled the country to avoid criminal probe against them in a Rs 8,100-crore bank loan fraud involving a consortium of banks," a senior official said. The agency has also sought confiscation of the assets worth over Rs 5,000 crore of the Vadodara-based business family as part of the action under the fugitive law. The agency has filed a fresh chargesheet in this case, under the PMLA, early this week and had charged the Sandesaras and others with money laundering and siphoning bank loans. While the Sandesaras are reported to be based in Nigeria, Patel is said to be in the US. The agency will also move for their extradition soon, they said. The ED had made similar pleas, under the new fugitive law, against Vijay Mallya and diamond jewellers Nirav Modi and Mehul Choksi in separate bank loan money laundering probes.

Rs 8,100 crore bank loan fraud: ED moves court against Sterling Biotech group promoters

Fraud-hit Punjab National Bank has invited applications for empanelment of detective agencies to locate its untraceable borrowers as it looks to "significantly" supplement efforts to recover bad loans which surged to Rs 57,519 crore at December end.&nbsp

In its efforts to recover NPAs, the PNB has also resorted to 'Gandhigiri' wherein its staff hope to 'name and shame' defaulting borrowers to recover up to Rs 150 crore worth bad loans every month.&nbsp

The Delhi-headquartered bank has been at the receiving end of the over Rs 13,000 crore fraud involving diamond merchants Nirav Modi and Mehul Choksi.&nbsp

PNB on Wednesday invited applications to empanel detective agencies with an aim to "significantly supplement efforts of the field officials in recovering bank's dues in NPA accounts by utilising services of the detective agencies", it said.&nbsp

Interested parties have been asked to file applications and relevant documents by May 5.&nbsp

All NPA accounts (sub-standard, doubtful and loss category would be allocated to detective agencies for gathering information required by the bank.&nbsp

Services of detectives will be hired to locate the borrower(s)/co-borrower(s)/guarantor(s)/ mortgagor(s), (in/outside India) including their legal heirs who are either untraceable or not available at the addresses given in bank's records.&nbsp

The selected agencies will have to ascertain the latest information about defaulters present address, occupation, business, income streams, details of their all assets, among other things.&nbsp

They will also have to find out details of bank accounts maintained by the defaulting borrower/guarantor, including their legal heirs. Agencies will be given a maximum 60 days for submission of the report, which may be extended to 90 days in emergent circumstances keeping in view complexity of the case.&nbsp

PNB, which is the country's second largest state-run lender after SBI, had gross non-performing assets (NPAs) of Rs 57,519 crore or 12.11 per cent of gross advances as of December 2017.s

The Delhi-headquartered bank has been at the receiving end of the over Rs 13,000 crore fraud involving diamond merchants Nirav Modi and Mehul Choksi.

Fraud-hit Punjab National Bank has invited applications for empanelment of detective agencies to locate its untraceable borrowers as it looks to "significantly" supplement efforts to recover bad loans which surged to Rs 57,519 crore at December end. In its efforts to recover NPAs, the PNB has also resorted to 'Gandhigiri' wherein its staff hope to 'name and shame' defaulting borrowers to recover up to Rs 150 crore worth bad loans every month. The Delhi-headquartered bank has been at the receiving end of the over Rs 13,000 crore fraud involving diamond merchants Nirav Modi and Mehul Choksi. PNB on Wednesday invited applications to empanel detective agencies with an aim to "significantly supplement efforts of the field officials in recovering bank's dues in NPA accounts by utilising services of the detective agencies", it said. Interested parties have been asked to file applications and relevant documents by May 5. All NPA accounts (sub-standard, doubtful and loss category would be allocated to detective agencies for gathering information required by the bank. Services of detectives will be hired to locate the borrower(s)/co-borrower(s)/guarantor(s)/ mortgagor(s), (in/outside India) including their legal heirs who are either untraceable or not available at the addresses given in bank's records. The selected agencies will have to ascertain the latest information about defaulters present address, occupation, business, income streams, details of their all assets, among other things. They will also have to find out details of bank accounts maintained by the defaulting borrower/guarantor, including their legal heirs. Agencies will be given a maximum 60 days for submission of the report, which may be extended to 90 days in emergent circumstances keeping in view complexity of the case. PNB, which is the country's second largest state-run lender after SBI, had gross non-performing assets (NPAs) of Rs 57,519 crore or 12.11 per cent of gross advances as of December 2017.s

Private detectives, Gandhigiri: How PNB is trying to get loaned money back

IDBI Bank Ltd said on Tuesday fraudulent loans of Rs 772 crore were issued from five of its branches in Andhra Pradesh and Telangana, sending its shares lower on Wednesday.&nbsp;

Some of the loans, which were issued during fiscal years 2009-2013 for fish farming businesses, were obtained against fake lease documents of non-existent fish ponds and by inflating the value of collateral, the company said.

The company found major lapses in processing and disbursing the loans by two of its officials. The lender dismissed one of the officials, while the other official had already retired, it said.

The Central Bureau of Investigation (CBI), has registered cases for two of the five complaints, relating to branches at Basheerbagh and Guntur, the company said.

The bank said earlier on Tuesday it initiated a quality assurance audit, expected to be completed by April.

IDBI shares fell as much as 3.5 per cent to 73.6 rupees by 0512 GMT, while the index for public sector lenders Nifty PSU Bank index dropped as much as 1.8 per cent.

($1 = 65 rupees)

IDBI shares fell as much as 3.5 per cent to 73.6 rupees

IDBI Bank Ltd said on Tuesday fraudulent loans of Rs 772 crore were issued from five of its branches in Andhra Pradesh and Telangana, sending its shares lower on Wednesday. Some of the loans, which were issued during fiscal years 2009-2013 for fish farming businesses, were obtained against fake lease documents of non-existent fish ponds and by inflating the value of collateral, the company said. The company found major lapses in processing and disbursing the loans by two of its officials. The lender dismissed one of the officials, while the other official had already retired, it said. The Central Bureau of Investigation (CBI), has registered cases for two of the five complaints, relating to branches at Basheerbagh and Guntur, the company said. The bank said earlier on Tuesday it initiated a quality assurance audit, expected to be completed by April. IDBI shares fell as much as 3.5 per cent to 73.6 rupees by 0512 GMT, while the index for public sector lenders Nifty PSU Bank index dropped as much as 1.8 per cent. ($1 = 65 rupees)

IDBI Bank discloses fraud of Rs 772 crore, shares fall

The extent of the unraveling fraud at India&#39;s state-run Punjab National Bank could rise beyond the nearly $2 billion mark so far outlined by the lender, according to a source involved in the probe and court documents.

The source, who asked not to be named, said investigators had not yet recovered all the papers and loan guarantees allegedly issued by rogue employees of the bank, and consequently believed the bank&#39;s exposure could be greater than revealed so far.

In what has been dubbed as the biggest fraud in India&#39;s banking history, Punjab National Bank (PNB) and police have accused two jewelry groups - one controlled by diamond tycoon Nirav Modi and the other by his uncle Mehul Choksi - of colluding with bank employees to get credit from overseas banks using fraudulent guarantees.

Both Choksi and Modi have denied the allegations and lawyers for the two key accused PNB employees in the case have also said they are innocent.

According to court filings, the exposure to three companies controlled by Modi has been estimated at 64.98 billion rupees ($999 million), while firms controlled by Choksi have been accused of defrauding the bank of 61.38 billion rupees.

The Central Bureau of Investigation (CBI) has told a Mumbai court that the amount involving Modi&#39;s companies was likely to go up, according to the source and court filings, copies of which have been reviewed.

The CBI told the court that its investigation had found that the fraudulent issuance of letters of undertaking (LoUs), or guarantees, through a Mumbai branch of the bank had been going on since 2010.

In papers filed on Monday, the CBI also said PNB did not have all the documents related to the LoUs, since those were returned to the borrower.

&quot;Most of these documents are not yet recovered. The size of the fraud has now gone (up)...and the same is likely to go even higher,&quot; the CBI said in the court filing.

PNB did not respond to requests on Tuesday seeking comment on the risk of its exposure rising further.

The bank initially reported to authorities on January 29 that the jewelry groups had defrauded it of 2.8 billion rupees, or about $44 million. On February 14 it said the fraud sum had reached $1.77 billion after a detailed investigation.

It raised the amount further to nearly $2 billion last week, saying it had discovered some $200 million more in fraudulent letters of credit, another form of credit guarantee, issued to Choksi&#39;s Gitanjali group. 
&nbsp;

"Most of these documents are not yet recovered. The size of the fraud has now gone (up)...and the same is likely to go even higher," the CBI said in the court filing

The extent of the unraveling fraud at India's state-run Punjab National Bank could rise beyond the nearly $2 billion mark so far outlined by the lender, according to a source involved in the probe and court documents. The source, who asked not to be named, said investigators had not yet recovered all the papers and loan guarantees allegedly issued by rogue employees of the bank, and consequently believed the bank's exposure could be greater than revealed so far. In what has been dubbed as the biggest fraud in India's banking history, Punjab National Bank (PNB) and police have accused two jewelry groups - one controlled by diamond tycoon Nirav Modi and the other by his uncle Mehul Choksi - of colluding with bank employees to get credit from overseas banks using fraudulent guarantees. Both Choksi and Modi have denied the allegations and lawyers for the two key accused PNB employees in the case have also said they are innocent. According to court filings, the exposure to three companies controlled by Modi has been estimated at 64.98 billion rupees ($999 million), while firms controlled by Choksi have been accused of defrauding the bank of 61.38 billion rupees. The Central Bureau of Investigation (CBI) has told a Mumbai court that the amount involving Modi's companies was likely to go up, according to the source and court filings, copies of which have been reviewed. The CBI told the court that its investigation had found that the fraudulent issuance of letters of undertaking (LoUs), or guarantees, through a Mumbai branch of the bank had been going on since 2010. In papers filed on Monday, the CBI also said PNB did not have all the documents related to the LoUs, since those were returned to the borrower. "Most of these documents are not yet recovered. The size of the fraud has now gone (up)...and the same is likely to go even higher," the CBI said in the court filing. PNB did not respond to requests on Tuesday seeking comment on the risk of its exposure rising further. The bank initially reported to authorities on January 29 that the jewelry groups had defrauded it of 2.8 billion rupees, or about $44 million. On February 14 it said the fraud sum had reached $1.77 billion after a detailed investigation. It raised the amount further to nearly $2 billion last week, saying it had discovered some $200 million more in fraudulent letters of credit, another form of credit guarantee, issued to Choksi's Gitanjali group.

PNB bank fraud likely to swell beyond $2 billion mark

The Special CBI court in Mumbai has sent Vipul Ambani President (Finance) of Nirav Modi&#39;s Fire Star Diamond and 5 other accused Kavita Makikar, Arjun Patil, Rajesh Jindal, Kapil Khandelwal and Nitin Shahi to judicial custody for 14 days.&nbsp;&nbsp;

The six arrested in February by the CBI&nbsp;will remain in Judicial custody till March 19.&nbsp;

The CBI in its interrogation also revealed that the Vipul Ambani had complete knowledge of fraudulent and illegal Letter of Undertakings taken by Nirav Modi.&nbsp;

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<a href="https://twitter.com/hashtag/PNBFraudCase?src=hash&amp;ref_src=twsrc%5Etfw">#PNBFraudCase</a>: Vipul Ambani, President (Finance) of Nirav Modi&#39;s Fire Star Diamond and 5 other accused - Kavita Mankikar, Arjun Patil, Rajesh Jindal, Kapil Khandelwal &amp; Niten Shahi sent to Judicial Custody till 19th March by Special CBI Court, Mumbai
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/970604776873488384?ref_src=twsrc%5Etfw">March 5, 2018</a></blockquote>
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Whereas the<a href="http://www.wionews.com/india-news/pnb-scam-cbi-arrests-4-more-officials-of-modi-choksi-companies-34675" target="_blank"> four accused who were arrested Sunday</a> have&nbsp;been sent to judicial custody for 12 days.&nbsp;

Manish Bosamiya, Miten Pandya, Sanjay Rambhia and Aniyath Shiv Raman Nair will remain in judicial custody till March 17.&nbsp;

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<a href="https://twitter.com/hashtag/PNBFraudCase?src=hash&amp;ref_src=twsrc%5Etfw">#PNBFraudCase</a>: Four accused- Manish Bosamiya, Miten Pandya, Sanjay Rambhia &amp; Aniyath Shiv Raman Nair, arrested yesterday, sent to police custody till 17 March by Special CBI Court, <a href="https://twitter.com/hashtag/Mumbai?src=hash&amp;ref_src=twsrc%5Etfw">#Mumbai</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/970625581778792448?ref_src=twsrc%5Etfw">March 5, 2018</a></blockquote>
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The CBI also questioned Punjab National Bank&#39;s General Manager Treasury, SK Chand in connection with the Fraud case.&nbsp;

The agency has yet to track down Modi and Choksi, who left India in January before the fraud came to light. Both have issued statements denying the CBI&rsquo;s charges.

Nirav Modi and Mehul Choksi, owner of Gitanjali gems, are accused of securing unauthorised loans using fraudulent LoUs from the PNB.

They are suspected of colluding with bank officials at PNB to obtain unauthorised loans over a six-year period starting in 2011.&nbsp;

The Special CBI court in Mumbai has sent Vipul Ambani President (Finance) of Nirav Modi's Fire Star Diamond and 5 other accused Kavita Makikar, Arjun Patil, Rajesh Jindal, Kapil Khandelwal and Nitin Shahi to judicial custody for 14 days

The Special CBI court in Mumbai has sent Vipul Ambani President (Finance) of Nirav Modi's Fire Star Diamond and 5 other accused Kavita Makikar, Arjun Patil, Rajesh Jindal, Kapil Khandelwal and Nitin Shahi to judicial custody for 14 days. The six arrested in February by the CBI will remain in Judicial custody till March 19. The CBI in its interrogation also revealed that the Vipul Ambani had complete knowledge of fraudulent and illegal Letter of Undertakings taken by Nirav Modi. #PNBFraudCase: Vipul Ambani, President (Finance) of Nirav Modi's Fire Star Diamond and 5 other accused - Kavita Mankikar, Arjun Patil, Rajesh Jindal, Kapil Khandelwal & Niten Shahi sent to Judicial Custody till 19th March by Special CBI Court, Mumbai — ANI (@ANI) March 5, 2018 × Whereas the four accused who were arrested Sunday have been sent to judicial custody for 12 days. Manish Bosamiya, Miten Pandya, Sanjay Rambhia and Aniyath Shiv Raman Nair will remain in judicial custody till March 17. #PNBFraudCase: Four accused- Manish Bosamiya, Miten Pandya, Sanjay Rambhia & Aniyath Shiv Raman Nair, arrested yesterday, sent to police custody till 17 March by Special CBI Court, #Mumbai — ANI (@ANI) March 5, 2018 × The CBI also questioned Punjab National Bank's General Manager Treasury, SK Chand in connection with the Fraud case. The agency has yet to track down Modi and Choksi, who left India in January before the fraud came to light. Both have issued statements denying the CBI’s charges. Nirav Modi and Mehul Choksi, owner of Gitanjali gems, are accused of securing unauthorised loans using fraudulent LoUs from the PNB. They are suspected of colluding with bank officials at PNB to obtain unauthorised loans over a six-year period starting in 2011.

PNB Fraud: CBI sends 10 people to judicial custody

The EU wrapped up a five-year investigation Wednesday, which concluded in major fines for JP Morgan, Credit Agricole, and HSBC Holdings a total of $739 million for rigging the Eurobor benchmark, The Straits Times reports.

The three colluded on Euro interest rate derivative pricing elements, and violated EU antitrust laws by exchanging sensitive information, the European Commission stated via email, reports The Straits Times.

The fines were not all equal. Leading the way in fines&nbsp;was JPMorgan with 337.2 milllion euros, followed by Credit Agricole with 114.7 milllion euros and&nbsp;HSBC with 33.6 million euros, The Straits Times reports.

&quot;Banks have to respect the EU competition rules just like any other company operating in the single market,&quot; said the EU&#39;s antitrust commissioner, Ms Margrethe Vestager, according to the Straits Times.

The three lenders refused the opportunity to settle the case with the commission, forfeiting the change to receive a 10 per cent discount on any fines, the Straits Times reports.

The other four major banks that did settle the Euro Interbank Offered&nbsp;Rate (Euribor) case were accused of sharing through various mediums sensitive trading information, and working together to push the benchmark rate up or down depending on what most benefitted their trading positions.

London Interbank Offered Rate (Libor) and Euribor gauge banks&#39; estimated costs of borrowing money over various spans of time. These rates establish the benchmark&nbsp;used to calculate interest payments for trillions of euros of financial products, including mortages, the Straits Times reports.

(WION)

These rates establish the benchmark used to calculate interest payments for trillions of euros of financial products, including mortages

The EU wrapped up a five-year investigation Wednesday, which concluded in major fines for JP Morgan, Credit Agricole, and HSBC Holdings a total of $739 million for rigging the Eurobor benchmark, The Straits Times reports. The three colluded on Euro interest rate derivative pricing elements, and violated EU antitrust laws by exchanging sensitive information, the European Commission stated via email, reports The Straits Times. The fines were not all equal. Leading the way in fines was JPMorgan with 337.2 milllion euros, followed by Credit Agricole with 114.7 milllion euros and HSBC with 33.6 million euros, The Straits Times reports. "Banks have to respect the EU competition rules just like any other company operating in the single market," said the EU's antitrust commissioner, Ms Margrethe Vestager, according to the Straits Times. The three lenders refused the opportunity to settle the case with the commission, forfeiting the change to receive a 10 per cent discount on any fines, the Straits Times reports. The other four major banks that did settle the Euro Interbank Offered Rate (Euribor) case were accused of sharing through various mediums sensitive trading information, and working together to push the benchmark rate up or down depending on what most benefitted their trading positions. London Interbank Offered Rate (Libor) and Euribor gauge banks' estimated costs of borrowing money over various spans of time. These rates establish the benchmark used to calculate interest payments for trillions of euros of financial products, including mortages, the Straits Times reports. (WION)

EU fines JP Morgan, HSBC Holdings, Credit Agricole $739 million for rate-rigging

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