Former CEO Jailed Over $212 Million Investment Scam

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India-West News Desk

COLTS NECK, NJ -Parmjit Parmar, a 55-year-old former CEO, has been sentenced to five years in prison in connection with a $212.5 million investment fraud scheme, according to US court records.

Parmar, who was also known as Paul Parmer, was additionally ordered to serve three years of supervised release and pay $125 million. He had pleaded guilty in 2025.

Court documents stated that between May 2015 and September 2017, Parmar worked with co-conspirators Sam Zaharis, and Ravi Chivukula in a scheme linked to the financing of a transaction to take a healthcare services company private from the London Stock Exchange’s Alternative Investment Market.

According to court records, a private investment firm contributed approximately $82.5 million toward the transaction, while a consortium of financial institutions provided another $130 million, bringing the total funding to about $212.5 million.

The court filings alleged that Parmar and the other conspirators misrepresented the company’s financial condition and inflated its value to secure financing connected to the deal.

The records further stated that the group sought additional funds through public market offerings that were presented as financing for the acquisition of operating subsidiaries. However, according to the filings, several of those entities either did not exist or generated only a fraction of the operating income claimed.

Court documents also alleged that proceeds from the offerings were routed through bank accounts controlled by the conspirators and used for purposes unrelated to the proposed acquisitions.

According to the filings, the group created fake customers, altered bank statements, and fabricated subsidiary bank records to present a misleading picture of company revenue and financial activity.

Court records stated that the scheme led investors to value the company at more than $300 million as part of the financing arrangement.

The matter came to light in September 2017 after Parmar and the other conspirators either resigned or were removed from their positions at the company.

In March 2018, the company and several affiliated entities filed for bankruptcy, with court documents attributing much of the company’s financial collapse to the fraud scheme.