In a sweeping finale to a nine-year deceit, Sugar Land businessman Sudhakar Kalaga, 56, faces the music with a 24-month federal prison sentence for a fraudulent charade that swindled over $10 million. According to the U.S. Attorney’s Office, the mastermind behind a convoluted bribery and bid-rigging scheme came clean with a guilty plea earlier this year, admitting his role in duping a Houston manufacturing company.
With the gavel down, U.S. District Judge Lee Rosenthal decided that the former community pillar would not only serve time but also be under the watchful eye with one year of supervised release following his incarceration. Notably reported by the U.S. Attorney’s Office, Rosenthal implied that despite Kalaga's restitution of the hefty $10,406,219 bill, no act of atonement could undo the harm to the employees who faced layoffs as a result of his scheme.
During the length of this elaborate fraud from 2010 to 2019, as Kalaga confessed, he brazenly facilitated a shadow play with fictitious construction bids, effectively rigging the system to ensure that his companies appeared to offer the best deal. His underhanded tactics involved kickbacks in the millions to a complicit facilities manager, a cunning machination laid bare in court details obtained by the Justice Department. The revelation of fictitious competitors and insider collusion unveiled how deeply the company was fleeced, unbeknownst to them, by paying inflated invoices that fueled Kalaga's fraud.
The case, putting an end to the sordid affair, was spearheaded by the relentless efforts of the FBI and brought to a legal crescendo by Assistant U.S. Attorney Belinda Beek. Red-handed Kalaga, ordering restitution to be paid was allowed on bond until his imminent surrender to a Bureau of Prisons facility yet to be decided, is a fall from grace tale for the once-respected business owner.