By: Richard L. Smith
Nitin Vats, a 52-year-old Indian national and former employee of the now-defunct New Jersey-based marble and granite wholesaler Lotus Exim International Inc. (LEI), pleaded guilty to conspiracy to commit wire fraud affecting a financial institution.
U.S. Attorney Philip R. Sellinger announced that Vats entered his guilty plea before U.S. District Judge Susan D. Wigenton, acknowledging his involvement in a fraudulent scheme that led to significant financial losses for a victim bank.
Documents and court testimonies revealed that from March 2016 to March 2018, Vats and other LEI employees, under the direction of the company's owner, deceived the bank into extending a $17 million line of credit.
They falsely represented this credit to be secured by LEI's accounts receivable, which were, in fact, largely fabricated or grossly inflated.
To maintain the deception, Vats even created fake email addresses for supposed LEI customers, allowing his colleagues to impersonate these customers during inquiries from the bank and external auditors.
The elaborate fraud ultimately caused the bank to lose approximately $17 million when LEI defaulted on the line of credit.
The charge to which Vats has pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine. His sentencing is scheduled for September 11, 2024, marking a significant development in the case against the former employees of LEI.