Indo-American businessman arrested on the charge of defrauding

On the charges of defrauding the former lenders, an Indian-American businessman has been arrested at the Los Angeles International Airport on his return from India. An Indian-American businessman previously owned a popular jewellery chain in Boston.

Handa, 67 yrs old, was produced before a US court in Los Angeles yesterday following the arrest this week. He would eventually be brought to Boston for a formal trial.

On Thursday, a 2011 indictment unsealed charges Handa with 12 counts of wire fraud.

as per the indictment that Handa owned the Alpha Omega Jewellers, a watch and jewellery retailer in the Boston-area.

Alpha Omega experienced severe financial trouble from May 2007 to December 2007 and had difficulty keeping current with loans it had with several banks.
Handa fabricated inventory on reports that were submitted to the banks as part of the scheme to defraud the lenders of the Alpha Omega and in order to obtain additional loans.

On 15th December 2007, Handa and his family left the US. After discovering the departure of Handa, lenders of the Alpha Omega took control of the company and conducted a detailed review of the inventory of theAlpha Omega.

As per the indictment that the review revealed over USD 7 million in missing or unaccounted for inventory.

In a statement, FBI said that the charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years supervised release and a fine of USD 250,000 on each count.


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