FTX fraud: Indian-origin Nishad Singh pleads guilty to criminal charges
Darpan News Desk IANS, 01 Mar, 2023 01:18 PM
San Francisco, March 1 (IANS) Indian-origin Nishad Singh, the former director of engineering at collapsed crypto exchange FTX, has finally pleaded guilty to criminal charges and was currently cooperating with the US prosecutors in the alleged billion-dollar scam at the crypto trading platform run by former CEO Sam Bankman-Fried who is also facing a trial.
Singh pleaded guilty to six conspiracy charges, including conspiracy to commit wire fraud, conspiracy to commit money laundering and conspiracy to violate federal campaign finance laws.
Bankman-Fried, along with Gary Wang, co-founder of FTX, and Caroline Ellison, the former head of FTX's sister hedge fund Alameda Research, have all pleaded guilty in the ongoing case.
The US Securities and Exchange Commission (SEC) charged Singh for his role in a multi-year scheme to defraud equity investors in FTX.
According to the SEC's complaint, Singh created software code that allowed FTX customer funds to be diverted to Alameda Research, a crypto hedge fund owned by Bankman-Fried and Wang, despite false assurances by Bankman-Fried to investors that FTX was a safe crypto asset trading platform.
The complaint alleged that Singh knew or should have known that such statements were false and misleading.
"We allege that this was fraud, pure and simple: while on the one hand FTX touted its supposed effective risk mitigation measures to investors, on the other Singh and his co-defendants were stealing customer funds using software code Singh helped create," said Gurbir S. Grewal, Director of the SEC's Division of Enforcement.
The complaint also alleged that Singh was an active participant in the scheme to deceive FTX's investors.
Moreover, according to the complaint, as FTX neared collapse, Singh withdrew approximately $6 million from FTX for personal use and expenditures, including the purchase of a multi-million dollar house and donations to charitable causes.
In a parallel action, the US Attorney's Office for the Southern District of New York and the Commodity Futures Trading Commission (CFTC) also announced charges against Singh.
"Today's guilty plea underscores once again that the crimes at FTX were vast in scope and consequence," said Damian Williams, US attorney for the Southern District of New York.
Mystery deepened in the case of a kidnapped Indian-origin family in California as officials reported that a person was taken into custody in connection with the case after he attempted suicide and the truck belonging to one of the victims was found burning. But still missing is the kidnapped family - eight-month-old baby Aroohi Dheri, her parents, Jasleen Kaur, 27, and Jasdeep Singh, 36, and uncle, Amandeep Singh, 39.
The R37.7 million (Rs 17.2 crore) fraud case against two Indian-origin associates of the Gupta brothers has been postponed. The Estina dairy farm project was reportedly supposed to empower black farmers. But bank statements showed that it was being used to swindle cash, with high-profile government officials. The money was paid into the company's Bank of Baroda account in India.
The lawsuit has been filed against Colorado-based Global Medical Response (GMR), and companies under it, American Medical Response (AMR) and its subsidiaries, for turning away a qualified paramedic in midst of a global pandemic. In November 2020, AMR dismissed Singh after he requested and was denied personal protective equipment (PPE) that would accommodate his turban and beard.
Merced County Sheriff's Office on Monday, said in a statement that 36-year-old Jasdeep Singh, 27-year-old Jasleen Kaur, their eight-month-old child and relative 39-year-old Amandeep Singh were taken "against their will from a business." They have asked for public's help in locating the four missing persons.
In Dongara, some 351 km northwest of Perth, more than a century-old leather-bound book containing entries written in Gurmukhi - the official script of the Punjabi language - has been found.
The winners include Karina Samuel, 17, from Florida; Karun Kaushik, 17, from California; Laalitya Acharya, 18, from Ohio; and Sri Nihal Tammana, 13, from New Jersey. Established in 2001 by author T.A.Barron, the Barron Prize is a non-profit organisation annually honouring 25 outstanding young leaders from ages 8 to 18.
