NEWARK, NJ – Nitin Vats, a former employee of the defunct Lotus Exim International Inc. (LEI), a New Jersey-based marble and granite wholesaler, admitted to participating in a $17 million bank fraud scheme. U.S. Attorney Philip R. Sellinger announced that Vats, 52, an Indian national, pleaded guilty to conspiracy to commit wire fraud affecting a financial institution.
The fraudulent activities occurred from March 2016 through March 2018, where Vats, along with other LEI employees, secured a $17 million line of credit from a bank using falsified accounts receivable. These accounts were either inflated or entirely fabricated, leading to LEI defaulting on the credit line. The scheme involved creating fake email addresses to mislead auditors and the bank about the authenticity of the receivables.
Vats now faces up to 30 years in prison and a $1 million fine, with sentencing scheduled for September 11. The bank suffered approximately $17 million in losses due to the fraud.