RALEIGH, NC (WNCN) — A 56-year-old Cary man was arrested Tuesday after being charged with 23 counts of investment fraud.
According to the indictment, Kumar Arun Nepali allegedly relied on his good standing in the Indian-American community in Cary to trick at least 12 victims or groups of victims into giving him money under the false pretense that he would invest their money in legitimate developments property in Orange County, according to U.S. Attorney Michael Easley.
Napoli allegedly used the funds from those victims to repay earlier investors who believed he was recouping their initial investment and legitimate capital gains. Returning capital to previous investors by deceiving new investors is commonly known as a Ponzi scheme.
“We are committed to protecting investors from financial schemes,” Easley said. “The US Attorney’s Office is working closely with the FBI to identify, investigate and prosecute those who are defrauding people out of their hard-earned money.”
According to the indictment, Nepali routinely called the victims on the phone or spoke with them in person to describe a local real estate investment opportunity, usually in Orange County, Easley said.
It is alleged that Nepali used his employment with the city of Chapel Hill to convince the victims that he had inside knowledge about the development plans for the alleged properties.
The indictment said Nepali would request a certain amount of money within a short period of time, sometimes on the same day, to facilitate the closing of the transaction. He allegedly promised a return of the principal investment plus profits within months and sometimes asked his victims not to discuss the deal with other members of the community or to invoke a non-disclosure agreement.
“Our investigation shows that Nappali abused the trust placed in him by other members of the Indian-American community. He promised to invest his money in the property. Instead, Nepali used the funds to pay back other people he defrauded as part of his scheme; now many victims are left without their much-needed savings,” said Michael C. Sherk, Acting Special Agent in Charge of the FBI. “Fraud can have a direct and immediate impact on people and communities, and the FBI remains determined to bring those who perpetrate it to justice.”
Nappali was charged with 17 counts of wire fraud and six counts of dealing in the proceeds of crime. A trial by U.S. District Judge Terrence W. Boyle is expected to take place later this year.
Nepali faces up to 20 years in prison on the counts and possible fines.
Carey man arrested in Orange County real estate Ponzi scheme
Source link Carey man arrested in Orange County real estate Ponzi scheme