Three insurance executives from the East Bay have been hit with serious charges for their alleged roles in a million-dollar fraud that contributed to the downfall of an insurance company, federal authorities say. The trio, hailed from the now-defunct Global Hawk Risk Retention Group, stand accused of concocting a scheme that involved misrepresenting the insurance firm’s assets and misappropriating funds.
Jasbir S. Thandi, Sandeep Sahota, and Jaspreet Padda face multiple charges, including conspiracy to commit insurance fraud and making false statements to insurance regulators, according to an unsealed indictment acquired by the U.S. Attorney's Office. Prosecutors allege that from 2017 to 2019 Thandi, Sahota, and Padda colluded to overstate assets by tens of millions, of dollars, meanwhile funneling over $19 million into entities some of which were controlled by Thandi himself.
Court documents reveal Thandi, 67, who served as president and treasurer of Global Hawk, is also facing two counts of bank fraud from two separate bank loans obtained through false representations, amounting to more than $21 million. The fraudulent activity appeared to go unnoticed until May 2020, when insurance regulators unearthed the misappropriation leading to Global Hawk's insolvency and subsequent liquidation by the court order.
Warrants led to the arrests of Sahota, 47, and Padda, 40, with both men making initial court appearances before U.S. Magistrate Judge Alex G. Tse. According to the indictment, the maximum statutory sentences for the charges range from five to 30 years in prison, accompanied by hefty fines – each insurance fraud count alone carries the possibility of a $250,000 fine, while each bank fraud count may result in a fine of up to $1,000,000. However, any sentence will be determined by the court after considering U.S. Sentencing Guidelines and relevant statutes.
The case unfolds under the watchful eyes of Assistant United States Attorneys David Ward and Abraham Fine. It stems from a thorough investigation by the FBI and United States Postal Inspection Service. Victims who believe they were impacted by the alleged fraudulent activities of Global Hawk have been urged to reach out to the U.S. Attorney’s Office victim specialists.
