Two former executives of a Minnesota-based medical services company were sentenced to prison this week for their roles in multimillion-dollar fraud schemes. Following the announcement from U.S. Attorney Andrew M. Luger, Khemwattie Singh, and Neeraj Chepuri have been ordered to pay restitution for deceiving a Florida-based investment company through factoring contracts that resulted in a loss of more than $2.6 million, according to the U.S. Department of Justice.
Court records reveal that Singh, 53 the CEO of Global Medical Services, LLC, along with Chepuri, 55, and the company's chief medical officer, entered into these contracts between June and October 2018. They then intentionally withheld payment of receivables and misrepresented the financial status of the company, allowing them to transfer over $5 million overseas. Moreover, Singh failed to uphold her tax obligations, not filing quarterly payroll tax returns or forwarding withheld taxes to the IRS - as required by law.
Singh faced the consequences of her actions on December 29, 2023, when she pleaded guilty to one count each of wire fraud and failure to account for and pay over payroll taxes. As a result, she received a 27-month sentence for the factoring fraud and an additional 12 months for tax fraud, which will run concurrently. She has also been ordered to pay $3,957,364.62 in restitution.
Chief Judge Patrick J. Schiltz handed down Chepuri's sentence, totaling 21 months in prison, plus one year of supervised release, and Chepuri must pay a restitution of $3,265,363.14. Both defendants admitted their guilt with Singh's plea coming on December 29, 2023, and Chepuri's on the same day. The FBI, the Minnesota Commerce Fraud Bureau, and the IRS - Criminal Investigation joined forces to bring the case to a close, with Assistant U.S. Attorneys Chelsea A. Walcker and Robert M. Lewis leading the prosecution efforts.
