ALEXANDRIA, VA – Babu Ramaraj, 46, of Aldie, Virginia, is facing federal charges after a grand jury indictment revealed a brazen multi-million dollar investment fraud scheme. Ramaraj allegedly swindled dozens of investors across multiple states out of over $20 million, promising massive returns on fabricated infrastructure projects.
According to court documents, Ramaraj and his wife operated DAB Inspection and Consulting Services, LLC (DAB), a small home contracting business. But DAB’s modest revenue stream didn’t stop Ramaraj from spinning a web of lies, claiming his company had secured lucrative contracts with the Federal Aviation Administration, the Virginia Department of Transportation (VDOT), and a Washington D.C. water project – all totaling tens of millions of dollars. The alleged scheme hinged on the need for “large upfront bond payments” that Ramaraj claimed he couldn’t secure through traditional bank financing.
To lure investors, Ramaraj allegedly presented falsified contract award letters, invoices, and manipulated DAB financial records. He targeted individuals, including members of his Loudon County cricket league, offering annualized interest rates exceeding 100% on their loans. The indictment details a classic Ponzi scheme: Ramaraj allegedly used funds from new investors to pay off earlier investors, creating the illusion of profitability and encouraging further investment – and recruitment of friends and family.
But the promised bonds were never paid. Instead, the indictment alleges, Ramaraj funneled investor funds into his and his spouse’s online brokerage accounts for securities trades. He also wired over $1 million to accounts in India in his spouse’s name, splurged on multiple automobiles, acquired real estate, and generally funded a lavish lifestyle on the backs of his victims. The feds say the scheme ran from January 2020 through May 2024.
U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, FBI Special Agent in Charge David J. Scott, and Virginia State Corporation Commission Chair Jehmal T. Hudson announced the charges. Ramaraj was arrested and is currently being held pending trial before Senior United States District Judge Claude M. Hilton. If convicted, Ramaraj faces up to 20 years in prison for each count of wire fraud and up to 10 years for each count of unlawful monetary transactions.
Authorities are urging anyone who believes they may have been a victim of this scheme, or who has any information related to the case, to contact the FBI’s Washington Field Office at (202) 278-2000 or submit a tip online at https://tips.fbi.gov. You can also call the FBI’s tip line at 1-800-CALL-FBI (1-800-225-5324). Court documents can be found on the U.S. Attorney’s Office website for the Eastern District of Virginia and on PACER (Case No. 1:24-cr-147).
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Key Facts
- State: Virginia
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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