The former CEO of a healthcare services company has admitted his involvement in a conspiracy to defraud investors, according to an announcement by U.S. Attorney Alina Habba. Parmjit Parmar, also known as "Paul Parmar," aged 55 and residing in Colts Neck, New Jersey, pleaded guilty to conspiracy to commit securities fraud before U.S. District Judge Madeline Cox Arleo in Newark federal court.
Court documents reveal that between May 2015 and September 2017, Parmar and his associates, including Sotirios Zaharis (also known as "Sam Zaharis") and Ravi Chivukula, executed a scheme to defraud a private investment firm and others out of hundreds of millions of dollars. This was related to the funding of a transaction intended to take private a publicly traded healthcare services company on the London Stock Exchange’s Alternative Investment Market. The private investment firm contributed approximately $82.5 million while financial institutions added another $130 million for a total of around $212.5 million.
The fraudulent scheme involved inflating the value of Company A significantly beyond its actual worth. Parmar and his conspirators raised tens of millions from public markets under the pretense of funding acquisitions for Company A's subsidiaries—many of which were either non-existent or had minimal income.
Funds from these offerings were diverted through accounts controlled by the conspirators for purposes unrelated to any legitimate business acquisitions. They created fake customers and altered bank statements to make it appear that revenue was being generated legitimately.
To maintain this deception, false bank records were produced showing fabricated revenue streams for Company A, alongside misleading statements made to investors about its financial health.
As a result of these actions, victims valued Company A at over $300 million during financing discussions for taking it private. The scheme came undone in September 2017 when Parmar and his associates left or were removed from their positions with Company A; subsequently, on March 16, 2018, Company A filed for bankruptcy largely due to this fraud.
Parmar's guilty plea includes facing up to five years imprisonment along with a potential fine up to $250,000 under charges related specifically towards conspiring against securities laws; additionally agreeing upon forfeiture measures regarding certain properties/bank account contents whilst restitution is mandated towards those impacted negatively by said offense(s).
Special agents from FBI's New Jersey office played pivotal roles during investigations alongside support provided via headquarters-based forensic accounting teams within same organization structure hierarchy levels—U.S Attorneys Vinay S Limbachia George M Barchini Kelly M Lyons represented government interests throughout proceedings held locally within Newark jurisdictional boundaries where case heard/tried respectively therein
Charges against co-defendants Zaharis/Chivukula remain allegations pending further judicial determinations establishing guilt/innocence status concerning individual participation degrees if any exists whatsoever ultimately decided conclusively via trial outcomes determined accordingly thereafter based upon evidentiary submissions reviewed comprehensively prior rendering final verdicts reached definitively concluding respective matters appropriately addressed fully resolved finally adjudicated conclusively overall entirely thereby
Defense counsel representing Mr Paul 'Parmjit' includes John H Hemann Esq San Francisco CA Andrew D Goldstein Victoria R Pasculli Alessandra V Rafalson Esqs New York NY Anuva V Ganapathi Esq Palo Alto CA