The previous CEO of a publicly traded healthcare companies firm has been sentenced to 5 years in jail for his position in a $212.5 million funding fraud scheme.
The U.S. Division of Justice (DOJ) says Parmjit Parmar, also referred to as Paul Parmar, pleaded responsible to conspiracy to commit securities fraud and was sentenced on Might 5, 2026.
Prosecutors say Parmar, 55, of Colts Neck, New Jersey, was additionally sentenced to a few years of supervised launch and ordered to pay greater than $125 million in sufferer restitution.
The DOJ says Parmar and his co-conspirators orchestrated a scheme from Might 2015 via September 2017 to defraud a non-public funding agency and others in reference to a transaction to take non-public a healthcare companies firm traded on the London Inventory Alternate’s Different Funding Market.
To fund the transaction, a non-public funding agency contributed about $82.5 million, whereas a consortium of monetary establishments contributed one other $130 million.
Prosecutors say the conspirators used fraudulent strategies to inflate the worth of the corporate, together with phony clients, altered financial institution statements and fabricated financial institution information tied to subsidiary entities.
The DOJ says the conspirators additionally funneled proceeds from secondary choices via financial institution accounts they managed and used the cash for functions unrelated to buying the purported targets.
The rip-off was uncovered in September 2017, when Parmar and his co-conspirators resigned or had been terminated. The corporate and affiliated entities filed for chapter on March 16, 2018, attributing the monetary collapse largely to the fraud scheme.
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