New Delhi:
Two persons, including a 36-year-old Indian-origin consultant, have been arrested for allegedly conspiring to commit wire fraud in connection with a false invoicing scheme that defrauded health and retirement funds of about USD 3.4 million.
Shivanand Maharaj of New Jersey, along with Enrico Rubano, 48, were charged with two counts of conspiracy to commit wire fraud, US Attorney Preet Bharara said.
As alleged, over a period of six years, Maharaj and Rubano generated hundreds of invoices for work they had not performed, which Rubano, in his role as co-head of information technology for the funds, approved for payment.
The two were arrested yesterday and presented before US Magistrate Judge Andrew Peck.
According to the complaint, from 2008 through October 2015, Rubano was the co-head of information technology for the funds and had the authority to approve the payment of invoices from third-party vendors.
Beginning in 2009, and continuing through 2015, he and Maharaj devised a scheme in which companies they owned or controlled submitted to the funds invoices for millions of dollars in information technology services that were never performed.
Rubano also received kickbacks from Maharaj. Between 2009 and 2015, the two falsely billed and fraudulently received from the Funds at least approximately USD 3.4 million.
They are charged with two counts of conspiracy to commit wire fraud, each of which carries a maximum sentence of 20 years in prison.
