Prosecutors said the former CEO used fraudulent funds to avoid foreclosure on his mansion and to buy luxury apartments.
From his perch as chief executive officer of Constellation Healthcare Technologies, prosecutors say, Parmjit "Paul" Parmar was able to amass real estate holdings whose value reached into the tens of millions.
In addition to a sprawling mansion in Colts Neck, the U.S.
Attorney's Office said the 48-year-old was able to use company profits to purchase two luxury apartments in New York City with views of the Hudson, and a condo in the city's Financial District.
On Wednesday, that all came crashing down as FBI agents arrested the former CEO on charges he and two other company officials fraudulently inflated Constellation's market value, bilking a private investment firm and other banks for more than $300 million as they sought to take the company private.
Along with Parmar, who has been charged with securities fraud and conspiring to commit securities fraud, investigators have obtained warrants for the arrest of Sotirios "Sam" Zaharis, the company's former chief financial officer, and Ravi Chivukula, a former executive director at the company.
Parmar was expected to appear before a federal magistrate in Newark on Wednesday afternoon.
It was not immediately clear whether he had retained an attorney who could comment on the charges.
Prosecutors said Zaharis, of Weehawken, and Chivukula, of Freehold, had not yet been arrested as of Wednesday afternoon.
Constellation is identified in a criminal complaint only as Company A, but Parmar's troubled leadership of the company has been well-documented in the financial press. Constellation and its affiliated companies filed for Chapter 11 bankruptcy in March, with its new management writing in a bankruptcy court affidavit that forensic accountants had discovered many of Constellation's purported subsidiaries were fictional sham companies created by Parmar, Zaharis and Chivukula.
All three men resigned or were fired from the company when the scheme was discovered in September 2017, according to federal authorities.
Prosecutors said the fake companies were the targets of sham acquisitions pitched by the trio to potential investors, whose funds were then used both for purposes that had nothing to do with the acquisitions and to further the misrepresentation the companies had their own revenue.
Government attorneys said that Parmar and his co-conspirators also had used millions in company funds to avoid foreclosure of his $27.3 million mortgage for the Colts Neck mansion, as well as to purchase the New York apartments.
In addition to the criminal charges against the three men, the U.S.
Attorney's Office said in a statement that it was expecting to file a civil complaint today seeking forfeiture of all four properties.
Thomas Moriarty may be reached at email@example.com.
Follow him on Twitter at @ThomasDMoriarty.
Find NJ.com on Facebook.
El contenido parcial de la información expuesta es propiedad de la fuente mencionada.