In a courtroom resolution yesterday, Pushpesh Kumar Baid, also known as "PK Jain," pleaded guilty to conspiracy to commit wire fraud in connection with a scheme that deceived investors out of a significant amount of money. The scheme involved a company called Tradepay Capital LLC, which falsely presented itself as a factoring business. United States Attorney for the Eastern District of New York, John J. Durham, and FBI Assistant Director in Charge Christopher G. Raia announced the guilty verdict, as reported by the U.S. Attorney's Office.
Baid, facing up to 20 years behind bars, using shell companies and bogus bank accounts. He was a mastermind orchestrating a web of deception, creating a fraudulent operation with "fraudulent documents, and other lies," United States Attorney Durham stated, according to the press release. Baid's fraudulent actions made it appear as though Tradepay was a legitimate business, when in fact it was not. Tradepay's operations involved factoring, where invoices were sold at discounted rates for immediate capital, similar to flipping a house for a quick profit when the invoice's full payment came due.
From April 2017 to October 2019, with Baid in control, the company’s invoices—allegedly sourced from a variety of businesses—were entirely fabricated, complete with forged signatures on both sides of the transactions. Funds that were intended for Tradepay’s partners were diverted into a complex network of bank accounts controlled by Baid through multiple entities, enabling him and his co-conspirators to spend millions on personal luxuries. The scheme continued until payments ceased abruptly in July 2019, ultimately defrauding investors of approximately $35 million.
As part of his guilty plea, Baid acknowledged defrauding investors in Luxestreet Inc., formerly known as Asset Capital Partners LLC. He had described the company as a luxury watch dealer catering to the wealthy, but the investigation revealed that the items were actually counterfeit, and the contracts were forged. The prosecution, led by Assistant United States Attorneys Dylan A. Stern, Benjamin Weintraub, and Molly Delaney, outlined the extent of Baid's fraudulent activities. The Internal Revenue Service, Criminal Investigations, was also recognized for its role in uncovering Baid's fraud.
