Indian-American Couple Indicted In Multi-Million Fraud In US
The couple faces up to 30 years in prison and a USD 1 million fine for each count of financial fraud.
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An Indian-American couple has been indicted in a multi-million financial fraud in the US, and faces up to 30 years in prison and a USD 1 million fine.
Pethinaidu Veluchamy, 70 and his 65-year-old wife Parameswari Veluchamy, who owned First Mutual Bancorp in Illinois, intentionally hid cash and assets from creditors after defaulting on USD 40 million in personal and corporate loans, according to the indictment.
The couple face up to 30 years in prison and a USD 1 million fine for each count of financial fraud, it said.
They were the principal shareholders of First Mutual Bancorp of Illinois Inc, a holding company for Mutual Bank.
In June 2009, according to the indictment, the couple defaulted on personal and corporate loans totalling USD40 million.
The following month, Mutual Bank was shut down by federal regulators.
Prior to the shutdown and continuing until at least November 2015, the couple hid millions of dollars in assets by falsifying documents, moving money into domestic and foreign bank accounts, and directing employees to destroy financial records, the indictment states, the Justice Department said in a press release.
The couple also transferred cash to their two adult children, with nearly USD 8.5 million going to one and more than USD 10.1 million to the other, according to the indictment.
The 12-count indictment charges Pethinaidu with four counts of bank fraud, two counts of destroying records to obstruct a bankruptcy proceeding, two counts of making a false statement under oath in a bankruptcy proceeding, and one count of making a false statement in an application for a US passport.
Parameswari is charged with four counts of bank fraud, two counts of destroying records to obstruct a bankruptcy proceeding, one count of making a false statement under oath in a bankruptcy proceeding, and one count of making a false statement in an application for a US passport.
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