In a shocking development, it was unsealed that an Indian man named Kumar Arun Neppalli is indicted in 23 counts of wire fraud and money laundering.
Going into the story, Kumar, who formerly worked as a Chapel Hill transportation engineer used to trick people from the Indian-American community in the USA by saying he had inside information on a real estate boom in Orange County, North Carolina.
In his elaborate fraudulent scheme, Kumar took money from 12 victims, promising real estate gains. But what he really did was pay off the money he too from new investors to the old investors, leading them to think he was delivering legitimate gains.
Such schemes are usually named Ponzi schemes. Kumar could be facing upto 20 years in prison for each of the 23 counts that he’s inducted in. This means he could potentially face prison time of 460 years.
Neppalli was indicted on 17 counts of Wire Fraud in violation of 18 U.S.C. § 1943 and 6 counts of Conducting Transactions in Criminally Derived Property in violation of 18 U.S.C. § 1957, the statement from the Attorney of East District of North Carolina read.
Kumar Neppalli was arrested on Tuesday and further investigation is being carried out by the Attorney’s office and the FBI.