United States SEC Charged Individual for Defrauding $31 Million from 70 Investors to Finance Surety & Performance Bonds with 40% to 60% Returns via His Company DAB Inspection & Consulting Services from 2019 to 2024, Used Investor Funds to Buy Luxury Cars, Jewellery, Property, Unprofitable Options Trading & Pay Earlier Investors
26th July 2024 | Hong Kong
The United States Securities & Exchange Commission (SEC) has charged an individual (Babu Ramaraj) for defrauding $31 million from more than 70 investors to finance surety & performance bonds with 40% to 60% returns via his company DAB Inspection & Consulting Services from 2019 to 2024. The individual (Babu Ramaraj) had used investor funds ($31 million) to buy luxury cars, jewellery, property, engage in unprofitable options trading & pay earlier investors. United States SEC (25/7/24): “The Securities and Exchange Commission today charged Babu Ramaraj, a resident of Aldie, Virginia, with defrauding more than 70 investors of approximately $31 million through his company, DAB Inspection and Consulting Services LLC. The SEC’s complaint alleges that, from February 2019 through May 2024, Ramaraj solicited and lured his victims with the promise of 40-60 percent annual investment returns. According to the complaint, Ramaraj falsely told investors that he would use their funds to finance surety and performance bonds for large-scale, lucrative contracts DAB had been awarded to provide quality assurance services to state and local governments. Ramaraj allegedly created fake contracts and financial documentation to support his misrepresentations. The SEC alleges that, in reality, the contracts never existed, and Ramaraj instead used investor funds to purchase luxury automobiles, jewelry, and property, engage in unprofitable options trading, and pay earlier investors … … The SEC’s complaint, filed in the United States District Court for the Eastern District of Virginia, charges Ramaraj with violating antifraud provisions of the federal securities laws and seeks an injunction, disgorgement, penalties, and an officer-and-director bar. In a parallel action, in June 2024, the U.S. Attorney’s Office for the Eastern District of Virginia announced criminal charges against Ramaraj for wire fraud and unlawful monetary transactions. Those charges are pending. The SEC’s investigation was conducted by Christine R. O’Neil, Matthew B. Homberger, and Michael A. Cuff in the Philadelphia Regional Office. It was supervised by Brian R. Higgins, Brendan P. McGlynn, Mr. Thompson, and Nicholas P. Grippo. The SEC’s litigation will be led by Karen M. Klotz and Judson Mihok and supervised by Gregory R. Bockin. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Eastern District of Virginia, the FBI, and the Virginia State Corporation Commission.
” United States SEC Charged Individual for Defrauding $31 Million from 70 Investors to Finance Surety & Performance Bonds with 40% to 60% Returns via His Company DAB Inspection & Consulting Services from 2019 to 2024, Used Investor Funds to Buy Luxury Cars, Jewellery, Property, Unprofitable Options Trading & Pay Earlier Investors “
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Scott A. Thompson, Associate Director of Enforcement in the SEC’s Philadelphia Regional Office: “As we allege, Ramaraj promised his investors unrealistic returns from government contracts he never had and then used their money to fund his own lifestyle and to make Ponzi-like payments to maintain the deception. We will continue to hold accountable those who exploit investors’ trust for personal gain.”
United States SEC Charged Individual for Defrauding $31 Million from 70 Investors to Finance Surety & Performance Bonds with 40% to 60% Returns via His Company DAB Inspection & Consulting Services from 2019 to 2024, Used Investor Funds to Buy Luxury Cars, Jewellery, Property, Unprofitable Options Trading & Pay Earlier Investors
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