Loudoun Co. man charged in yearslong $20 million funding rip-off



Prosecutors introduced the indictment of an Aldie, Virginia, man for his alleged half in a multiyear lending rip-off that defrauded dozens of traders in Maryland, Virginia and different jurisdictions. 

Prosecutors introduced the indictment of an Aldie, Virginia, man for his alleged half in a multiyear lending rip-off that defrauded dozens of traders in Maryland, Virginia and different jurisdictions.

A federal grand jury indicted 46-year-old Babu Ramaraj on fees of wire fraud and illegal financial transactions in late June, in response to a information launch from the U.S. Attorney’s Office for the Eastern District of Virginia.

Ramaraj and his spouse personal DAB Inspection and Consulting Services, a house contractor that does patio and deck initiatives, in response to court docket paperwork.

Ramaraj allegedly advised traders that the small, modestly performing enterprise nabbed worthwhile contracts with authorities companies together with the Federal Aviation Administration, Virginia Department of Transportation and extra.

He additionally reportedly advised traders his enterprise was, “a three way partnership accomplice on a Washington DC Water Clean Rivers Project” that collectively netted “tens of tens of millions of {dollars} every” for “engineering inspection work on enormous infrastructure initiatives.”

Officials argued that Ramaraj claimed a big upfront bond cost was essential to safe these jobs, however the enterprise was not capable of acquire financial institution financing as a result of DAB was too new and wanted cash sooner than a financial institution may feasibly present.

From January 2020 to May 2024, Ramaraj reportedly pitched loans to traders, “together with members of his Loudoun County cricket league,” at a excessive rate of interest.

“Using cash from later traders, Ramaraj allegedly paid preliminary traders the promised returns to entice them to proceed investing and to recruit different family and friends to speculate,” the information launch acknowledged.

To persuade traders that his rip-off was actual, Ramaraj allegedly provided falsified contract award letters, invoices, DAB monetary information and extra.

Once he acquired the cash, prosecutors argue that he went on a spending spree of kinds.

Instead of paying for the bonds as promised, Ramaraj allegedly moved the cash into brokerage accounts that belonged to him and his spouse so they may “have interaction in securities trades.”

Prosecutors mentioned that DAB garnered “greater than $20 million in mixture” using this tactic, wiring over $1 million to accounts in India underneath his spouse’s title. The indictment additionally claims Ramaraj used cash to buy a number of vehicles, acquire actual properties and make different funds to fund his way of life.

“If convicted, Ramaraj faces as much as 20 years in jail for every depend of wire fraud and as much as 10 years in jail for every depend of illegal financial transactions,” the Justice Department acknowledged.

The fees comply with federal complaints filed in opposition to Ramaraj by residents in North Carolina and Georgia. North Carolina complainants accused him of scamming them out of roughly $400,000 from July 2022 to July 2023, whereas Georgia residents accused Ramaraj of tricking them out of $200,000.

Ramaraj is about to look in federal court docket for his arraignment on July 12.

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