Indian couple's $ 460 million fraud connected to Bangalore?

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Bangalore, Jun 22: The epic fraud by the Indian American couple, Reddy and Padma Allen in the US can be best described as record-breaking and involves a whopping $ 460 million. It was recently found that their New Jersey based company, TechnoDyne LLC that carried out the multi-crore fraud in New York City has an office in Bangalore. The office operates under a different name.

The couple charged under federal fraud on siphoning off money in the CityTime project, involving Mayor Michael Bloomberg had reportedly pocketed kick offs to the tune of $ 460 million. The over-billing scam had put the case under the spotlight. The couple after carrying out the fraud is believed to have fled to India.

This was when the news emerged on a front company of the couple came to light that has been operational in Bangalore's JP Nagar in the name of Mccreade Software Asia Pvt Ltd. Recruitment ads of the company confirms that this company is a sister concern of TechnoDyne.

The Allens are under the scanner for paying kickbacks to attain an IT sub-contract to create a payroll system for New York City. They had later over-billed NYC for profit. The Manhattan US Attorney Preet Bharara had termed the fraud “truly jaw-dropping" and “epic in duration, magnitude and scope".

TechnoDyne, claims to have a global development centre in Bangalore, though that address is not registered with the Registrar of Companies, Karnataka. This office was involved in the recruitment of staff for both India and US operations. This office was shut on Tuesday evening. Preliminary investigations revealed that Mccreade's Bangalore operations was carried out by Dr Padma Allen"s mother Soundarya Raghu, who is a major stakeholder in the company and the Director in the Board since 2005.

A document with the Registrar of Companies shows further evidence to the claim and says, " Padma Alla wife of A V Reddy" as the Director of the company in 1999. The company has declared foreign exchange earnings of Rs 2.47 crore in 2003-04. However, there are no electronic record of annual returns and balance sheets for 2008, 2009 and 2010 with the Registrar of Companies.

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