Indian-origin man gets jail term, $2.6 million fine for embezzlement in US

An Indian-origin man has been sentenced to nearly three years in prison and ordered to pay $2.6 million in restitution for being convicted of mail fraud and embezzlement.

Dinesh Shankar, 41 of San Jose, California was sentenced to 33 months in prison as a result of the mail fraud conviction for embezzling from a medical device company, US Attorney David Anderson said.

In addition to the prison sentence and the $2.6 million restitution, he was also ordered to serve a three-year term of supervised release.

Shankar will begin serving his sentence this year.

According to the plea agreement, from March 2013 until January 2018, Shankar was an employee of a medical device company. Beginning July 2013 until December 2017, he submitted false expense reports and false invoices to the company's finance department, causing the company to pay more than half a million dollars in excess of the legitimate expenses and expenditures for services provided to the company.

In addition, Shankar admitted that he created false invoices that appeared to be issued by six different entities, which were actually fictitious business names for entities that he controlled.

He prepared the false invoices to make it appear that the entities provided testing and quality assurance services to his employer when, in fact, they had not provided the services. Shankar admitted he caused a total loss to the company of about $2.5 million.

A federal grand jury indicted Shankar in April last year charging him with six counts of mail fraud. He pleaded guilty to one count in November and the remaining counts were dismissed.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel