Indian- American couple indicted in a multi million fraud

By: | Published: June 24, 2016 12:12 PM

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.

In June 2009, according to the indictment, the coupledefaulted on personal and corporate loans totaling USD40million. (Reuters)In June 2009, according to the indictment, the coupledefaulted on personal and corporate loans totaling USD40million. (Representative Image: Reuters)

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 creditorsafter defaulting on USD 40 million in personal and corporateloans, according to the indictment.

The couple faces 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 MutualBancorp of Illinois Inc., a holding company for Mutual Bank.

In June 2009, according to the indictment, the coupledefaulted on personal and corporate loans totaling USD40million.

The following month, Mutual Bank was shut down by federal regulators.

Prior to the shutdown and continuing until at leastNovember 2015, the couple hid millions of dollars in assets by falsifying documents, moving money into domestic and foreignbank accounts, and directing employees to destroy financialrecords, the indictment states, the Justice Department said in a press release.

The couple also transferred cash to their two adultchildren, with nearly USD 8.5 million going to one and morethan USD 10.1 million to the other, according to the indictment.

The 12-count indictment charges Pethinaidu with fourcounts of bank fraud, two counts of destroying records to obstruct a bankruptcy proceeding, two counts of making a falsestatement under oath in a bankruptcy proceeding, and one countof 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 toobstruct a bankruptcyproceeding, one count of making a false statement under oathin a bankruptcy proceeding, and one count of making a falsestatement in an application for a US passport.

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