Super-rich NRI Paul Parmar was once known for his lavish lifestyle, 39,000 sqft New Jersey mansion.
Parmjit “Paul” Parmar, an Indian-origin investor who once called himself recession-proof as he continued splurging money in 2008, has been sentenced to five years in prison. Parmar pleaded guilty to conspiracy to commit securities fraud that involved inflating revenues, falsifying bank records, and misleading investors in a publicly traded healthcare services company where he served as CEO. The fraud is estimated to have involved over $212 million.
39,000 sqft mansion in New Jersey
Parmar was known for his opulent lifestyle and his 39,000 sqft mansion was widely featured in the media. One account from that time detailed how his mansion had an underground tunnel to connect the main house with the entertainment annex. The annex had an indoor pool, bowling alley, wine cellar, gym, mini theater, bar. Among many pools at the property, one was a saltwater pool surrponded by imported sand.In 2008, at the height of the global financial meltdown, Parmar gave interviews and declared that the recession had not affected him and claimed he was helping the economy by continuing to spend heavily on luxury items. He told reporters he had recently purchased a $110,000 BMW for his girlfriend and a Bentley for himself.However, by 2011, Parmar’s financial fortunes had reversed. The mansion entered foreclosure proceedings with approximately $26.3 million owed, primarily to Deutsche Bank.
Self-made entrepreneur
In his previous interviews, Parmar said he grew up in India and came to the US at the age of 19. He started on his own without any backing from his family. At the age of 25, he founded the Pegagus Consulting Group and then forayed into many businesses.
The fraud
Court documents show that Parmar’s legal troubles stemmed from his leadership of a healthcare company. He and others allegedly created fake customer lists, fabricated financial statements, and used falsified documents to attract investors.”From May 2015 through September 2017, Parmar and his conspirators, including Sotirios Zaharis, a/k/a “Sam Zaharis,” and Ravi Chivukula orchestrated an elaborate scheme to defraud a private investment firm and others out of hundreds of millions of dollars in connection with the funding of a transaction to take private a healthcare services company traded publicly on the London Stock Exchange’s Alternative Investment Market. To fund the transaction, the private investment firm put up approximately $82.5 million and a consortium of financial institutions put up another $130 million, for a total of approximately $212.5 million. The coconspirators utilized fraudulent methods to grossly inflate the value of the company and tricked others into believing that it was worth substantially more than its actual value,” the court document said. Go to Source
