Indicted for $19-mn fraud, freedom could be short-lived for Dalmia

Freedom could be short lived for Dinesh Dalmia the key accused of the multi-crore 2001 Calcutta Stock Exchange scam, who was released on bail on October 5 after more than seven months of imprisonment.

Freedom could be short lived for Dinesh Dalmia the key accused of the multi-crore 2001 Calcutta Stock Exchange (CSE) scam, who was released on bail on October 5 after more than seven months of imprisonment. A day later, the US Government has decided to seek his extradition after he was indicted by a court here on charges of a $19 million fraud for victimising companies like GE Capital and CitiCapital. Both the cases are, however, not related.

“We are seeking his extradition,” a spokesman of the office of US Attorney, New Jersey, told The Indian Express. He said, Dalmia along with two others including an Indian American, Ashish Paul, has been indicted by the New Jersey District Court for the $19 million fraud. This could land Dalmia in a US prison for as many as 30 years.

Dalmia, Paul and William Dowling from Ohio have been charged variously in 10 separate counts of money laundering, US Attorney Christopher J. Christie said. The government is seeking to recover the money through forfeiture of Dalmia’s $1.9 million home.

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Dalmia and Ashish Paul are named in numerous charges of the 16-count Indictment, which details their conspiracy to defraud lenders GE Capital Finance of Danbury, CitiCapital Technology Finance of Mahwah, and Fifth Third Leasing Company of Cincinnati. Dowling is also charged with conspiring with Dalmia and Paul to launder financial proceeds of their fraud scheme. The indictment was unsealed on September 29 after arrest of Paul at his Bergen County home.

As detailed in the conspiracy and wire-fraud charges, Dalmia controlled three New Jersey companies — Allserve, B2B Solutions and Vanguard Info Systems. Having allegedly fled India after the 2001 stock exchange scam, Dalmia allegedly approached the victim lenders from 2003 through 2005 seeking to secure multi-million dollar financing through lease-financing contracts for computer equipment and telephone lists for call centers purported to be engaged in debt collection and telemarketing.

As proof of his need for financing Dalmia presented the lenders fraudulent purchase agreements, invoices and delivery receipts, said the indictment.

Although the lenders inspected the purported high-end equipment before funding the multimillion dollar leases, Dalmia allegedly deceived them by showcasing virtually worthless, outdated equipment he had obtained from used computer dealers. After the lenders paid more than $19 million for the high-end equipment to an Ohio company controlled by Paul, the Paul company then subcontracted its obligation to provide equipment to yet another company controlled by Dalmia, according to the indictment.

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Dalmia and Paul duped the lenders by submitting fraudulent invoices to Paul-controlled company, which then routed the money back to Dalmia. Money laundering charges stem principally from the movement of funds through shell companies by Dalmia, Paul and Dowling.

Algerian-French artist’s work vandalised at Kochi art gallery over ‘obscenity’ allegations

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Algerian-French artist Hanan Benammar's linocut prints were vandalised by two artists at an international exhibition in Kochi. The exhibition, curated by Anushka Rajendran and Damian Christinger, was organised by the Kerala Lalithakala Akademi and opened on October 18.

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