NEWARK – A Colts Neck man who once led a publicly traded healthcare services company was sentenced May 5 to five years in federal prison for his role in a securities fraud conspiracy.
Parmjit “Paul” Parmar, 55, previously pleaded guilty to conspiracy to commit securities fraud. He also was sentenced to three years of supervised release and ordered to pay more than $125 million in restitution.
Federal prosecutors said Parmar and co-conspirators inflated the company’s value while seeking financing to take it private. The scheme involved phony customers, altered bank statements and fake revenue streams, authorities said.
From 2015 to 2017, investors and lenders put up about $212.5 million for the transaction. Prosecutors said some businesses the company claimed it was acquiring either did not exist or generated far less income than represented.
The fraud caused victims to value the company at more than $300 million, prosecutors said. The scheme unraveled in September 2017, and the company later filed for bankruptcy in March 2018.
The FBI investigated the case. The U.S. Attorney’s Office in Newark prosecuted it.
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