An elderly Indian-American couple from Illinois in the United States was charged with multi-million dollar fraud, face 30 years in jail and $1 million fine, said a statement from the U.S. Attorney's Office, northern district of Illinois. The couple owned the First Mutual Bancorp of Illinois and other financial entities. They hid assets and cash from creditors after defaulting to pay $40 million in personal and corporate loans.
Pethinaidu Veluchamy, 70, and his wife, Pareswari Veluchamy, 65, the principle share shareholders of First Mutual Bancorp, were indicted on Wednesday.
They had defaulted in June 2009 on personal and corporate loans worth $40 million, following which the bank was shut. The couple had hid assets, falsified documents, moved money into domestic and foreign bank accounts, and directed employees to destroy financial records, until November 2015, the indictment said.
Pethinaidu has been charged under 12 counts while Pareswari has been charged with eight. The man was charged with "four counts of bank fraud, two counts of destroying records to obstruct a bankruptcy proceeding, two counts of making a false statement under oath in a bankruptcy proceeding, and one count of making a false statement in an application for a U.S. passport," the indictment said.
Pareswari was charged with "four counts of bank fraud, two counts of destroying records to obstruct a bankruptcy proceeding, one count of making a false statement under oath in a bankruptcy proceeding, and one count of making a false statement in an application for a U.S. passport."
Each count is punishable for 30 years and a fine of $1 million is applicable.
