A 52-year-old Indian citizen and former employee of a defunct marble and granite wholesaler in New Jersey admitted that he participated in a bank fraud scheme related to a $17 million secured credit line, U.S. Attorney Philip R. said. Salinger.

Nitin Vats, 52, pleaded guilty before U.S. District Judge Susan D Wigenton to conspiracy to commit wire fraud affecting a financial institution.

Vats faces up to 30 years in prison and a $1 million fine.

Between March 2016 and March 2018, owners and employees of Lotus Exim International Inc (LEI), including Vats, conspired to fraudulently obtain a $17 million credit line from banks.

The bank believes that the credit is secured by LEI’s accounts receivable.

Court documents show that, in fact, the conspirators fabricated and exaggerated many accounts receivable, ultimately leading to LEI’s default.

To conceal the lack of adequate collateral, Watts devised a plan.

He created fake email addresses for LEI’s clients, allowing other employees to impersonate them when responding to inquiries from the bank and external auditors. The scheme resulted in losses of approximately $17 million to the victim banks.

“The scheme involved numerous fraudulent accounts receivable in which the outstanding balances were either inflated or completely fabricated,” court documents state.

Vats faces up to 30 years in prison and a $1 million fine. Sentencing is scheduled for September 11, 2024.