The former CEO of a public health care company has been sentenced to five years in prison for his role in a $212.5 million fraud.
US Department of Justice (DOJ) he says Parmjit Parmar, also known as Paul Parmar, pleaded guilty to securities fraud and was sentenced on May 5, 2026.
Prosecutors said Parmar, 55, of Colts Neck, New Jersey, was also sentenced to three years in prison and ordered to pay more than $125 million in restitution.
The DOJ alleged that Parmar and his associates conspired from May 2015 to September 2017 to defraud a private equity firm and others related to the private sale of a health care company that was traded on the London Stock Exchange’s Alternative Investment Market.
To finance the project, a private equity firm contributed $82.5 million, while financial institutions contributed another $130 million.
Prosecutors say the conspirators used fraudulent means to raise the company’s value, including fraudulent clients, altered bank statements and false bank records tied to subsidiary companies.
The DOJ said the perpetrators of the scheme also added funds from other sources through bank accounts they controlled and used the funds for purposes unrelated to their intended purpose.
The scam came to light in September 2017, when Parmar and his associates either resigned or were terminated. The company and its affiliates filed for bankruptcy on March 16, 2018, alleging that the economic downturn had led to a large portion of the fraud.
Follow us X, Facebook and Telegram
Don’t Miss Out – Sign up to receive email notifications straight to your inbox
Swimming Daily Hodl Mix
 
