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Indian-Origin Executives Convicted in Multi-Million Dollar Corporate Fraud Scheme in the US                                                      

Several Indian-origin executives were convicted in the United States of running a corporate fraud scheme worth over Rs. 8,200 crore.            

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The scheme involved overstating the revenue and profits of their software company, and involved bribing officials to secure government contracts. 

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The executives used the inflated financial figures to deceive shareholders and potential investors, and also falsified documents to cover up their fraud.                                                                                        

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The four executives convicted were identified as Suresh Kumar, former chief financial officer of the company,

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who was sentenced to 120 months in prison and fined $5 million; Padma Bandi, former senior vice president of finance,                                                          

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who was sentenced to 90 months in prison and fined $3 million; Rajendrasinh Makwana, former senior director of global finance,

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who was sentenced to 60 months in prison and fined $2 million; and Vishnubhotla Chakrapani,                                                                                      

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former senior vice president of worldwide sales, who was sentenced to 60 months in prison and fined $2 million.

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The investigation into the fraud scheme was conducted by the US Securities and Exchange Commission (SEC) and the Department of Justice (DOJ).                                                                                                          

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The investigation revealed that the executives had engaged in a multi-year scheme to deceive investors and inflate the financial performance of their company.                        

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They had allegedly used various fraudulent methods to inflate their revenue, including recording fictitious sales, backdating contracts, and using phony accounting entries.                        

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In addition to inflating the company's revenue and profits, the executives had also paid bribes to government officials to secure contracts.                         

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 The bribes were paid in cash and through a third-party intermediary in order to conceal the payments. 

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 The executives had also falsified documents to cover up the payments and bribes.

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The scheme began to unravel in 2017 when a whistleblower reported the fraud to the SEC. Following the whistleblower's report, 

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the SEC and the DOJ launched an investigation into the matter. The investigation led to the arrest and indictment of the executives in 2019. 

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The four executives were found guilty of multiple counts of securities fraud, wire fraud, and conspiracy to commit fraud.

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The case highlights the need for companies to have effective internal controls and for investors to exercise due diligence when investing in companies. 

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The SEC and the DOJ have been cracking down on corporate fraud in recent years and have imposed 

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and have imposed heavy fines on companies and individuals found guilty of fraud.

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In conclusion, the conviction of the four Indian-origin executives for their role in a corporate fraud scheme highlights 

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the need for companies to have strong internal controls and for investors to exercise due diligence.

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The SEC and the DOJ will continue to investigate and prosecute those involved in corporate

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fraud in order to protect investors and maintain the integrity of the financial markets.  

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