A district court judge has sentenced Navin Shankar Subramaniam Xavier, formerly the CEO of Essex Holdings Inc., to 15 years behind bars because of his involvement in two fraud scams. Xavier pleaded guilty to two wire fraud counts in January.
He ran Essex Holdings from 9/2010 through 5/2014, raising over $30M from almost 100 investors who bought promissory notes that were supposedly for investments in shipping, sugar transportation, and iron ore mining in Latin America. Xavier used forged paperwork, including a bogus financial statement. He promised return rates to get prospective customers to participate. He used most of the funds for his and his wife’s expenses, including luxury cars and jewelry, cosmetic surgery, and wedding bills. He also used newer investors’ funds to pay earlier investors until the Ponzi scam failed. According to evidence brought to court, investors lost more than $29M.
In a separate fraud, Xavier used the company to secure $1.2M in payments and about $1.5M of commercial real estate from the South Carolina Coordinating Council for Economic Development (SCCCED). These were supposed to go toward developing an industrial property into a rice packaging facility and a diaper plant. Documents submitted in court indicate that the defendant gave the SCCCED fake financial documentation so the contract would go to him. He also provided other fake financial paperwork, including bogus contractor invoices, so he would get paid. He again used a chunk of the funds for his own living expenses.
If you are an investor who has lost money in a Ponzi scam, you should contact our securities fraud law firm today. Often , fighting to recover your investment will usually require submitting an arbitration claim through the Financial Industry Regulatory Authority. This is not the type of case that you should handle without experienced legal representation.
Ponzi scams typically promise high, fast returns in order to bring in new investors. Unfortunately, in many cases with this type of fraud, no investments are actually made, although some do involve real investments. Earlier investors are paid supposed returns that are actually the funds brought in by newer investors. Contact Shepherd Smith Edwards and Kantas, LTD LLP today.
Ponzi Schemes, SEC
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient’s state. The content of this Website contains general information and may not reflect current legal developments, verdicts or settlements. The Firm expressly disclaims all liability in respect to actions taken or not taken based on any or all the contents of this Website. Read More.