CEO of Publicly Traded Firm Falsifies and Fabricates Bank Records in $212,000,000 Investment Fraud Scheme: DOJ
The ex-CEO of a publicly traded healthcare services company has been handed a five-year prison sentence for his involvement in a $212.5 million investment fraud scheme. Parmjit Parmar, also known as Paul Parmar, admitted guilt to conspiracy to commit securities fraud and was officially sentenced on May 5, 2026.
According to the U.S. Department of Justice (DOJ), Parmar, 55, hailing from Colts Neck, New Jersey, has also been ordered to pay over $125 million in victim restitution and will face three years of supervised release. The DOJ revealed that Parmar and his partners devised a plan between May 2015 and September 2017 to deceive a private investment firm and others during a transaction aimed at taking a healthcare services company private, which was listed on the London Stock Exchange’s Alternative Investment Market.
To finance the deal, a private investment firm contributed approximately $82.5 million, while a group of financial institutions added another $130 million. Prosecutors disclosed that the conspirators employed deceitful tactics to inflate the company’s value, such as creating fictitious customers, tampering with bank statements, and fabricating bank documents linked to subsidiary entities.
Additionally, the DOJ stated that the perpetrators channeled funds from secondary offerings through accounts under their control and utilized the money for purposes unrelated to the acquisition of the intended targets. The fraudulent activities came to light in September 2017, leading to the resignations or terminations of Parmar and his co-conspirators. Subsequently, the company and its affiliated entities filed for bankruptcy on March 16, 2018, attributing a significant portion of the financial collapse to the fraudulent scheme.
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