Earlier today, in a Brooklyn federal court, Pushpesh Kumar Baid, also known as "PK Jain," admitted guilt to conspiracy to commit wire fraud. The charges stemmed from a scheme designed to defraud investors in Tradepay Capital LLC, a company falsely presented as a legitimate factoring business. Baid's sentencing, which could see him facing up to 20 years of imprisonment, involves restitution of over $35 million and forfeiture exceeding $2.6 million. United States Magistrate Judge Lois Bloom presided over the proceedings.
John J. Durham, the United States Attorney for the Eastern District of New York, alongside Christopher G. Raia, Assistant Director in Charge of the FBI New York Field Office, announced Baid's guilty plea, which reveals the extent of the fraud executed through intricate shell companies, straw bank accounts, and fabricated documents. "Today's plea demonstrates that my Office will hold accountable fraudsters like Baid who enrich themselves at their investors' expense," Durham stated, emphasizing the commitment to addressing financial crimes.
Between April 2017 and October 2019, Tradepay Capital LLC deceived investors into believing it was a prosperous business. Baid and his co-conspirators used fake invoices, manipulated bank accounts, and diverted investor funds for personal use, including luxurious purchases. These fraudulent activities led to nearly $35 million in investor losses by mid-2019 when payments halted.
Baid further admitted to defrauding investors in Luxestreet Inc., formerly called Asset Capital Partners LLC. Using forged contracts and counterfeit luxury goods, Luxestreet's purported operations masked the ongoing fraud. Baid agreed to pay restitution to Luxestreet’s investors.
The investigation was conducted with assistance from the Internal Revenue Service's Criminal Investigations, with prosecutorial efforts led by Assistant United States Attorneys Dylan A. Stern, Benjamin Weintraub, and Molly Delaney, with Paralegal Specialist Sarah Burn contributing.
The Defendant: Pushpesh Kumar Baid, 44, resides in Miami, Florida. The case carries the docket number 21-CR-367 (DC) in the Eastern District of New York.