Guaravjit Singh, Wire Fraud, New Jersey 2020

State: New Jersey
Category: Fraud &#038; Financial Crimes
Source: <a href="https://www.justice.gov/usao-nj/pr/philadelphia-man-admits-orchestrating-2-million-ppe-fraud-scheme" style="color:#cc0000;" target="_blank" rel="nofollow noopener">DOJ Press Release ÃƒÂ¢Ã¢â‚¬Â Ã¢â‚¬â€

A Philadelphia man has admitted to orchestrating a $2 million Personal Protective Equipment (PPE) fraud scheme in the midst of the COVID-19 pandemic.

Guaravjit Singh, 26, pleaded guilty by videoconference before U.S. District Court Judge Peter G. Sheridan to an information charging him with one count of wire fraud, punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.

According to documents filed in the case, Singh engaged in the scheme to enrich himself by fraudulently inducing 10 victims to send him over $2 million to obtain PPE. He stole the money, spending it on personal expenses, and did not provide the promised PPE to the victims.

For instance, Singh induced victims to enter into an agreement pursuant to which Singh would be paid approximately $7.1 million in exchange for approximately 1.5 million medical gowns, which ultimately were to be sourced to the City of New York. Under the terms of the agreement, the victims wired Singh, through his company GJS Solutions LLC, approximately $712,500, representing a 10 percent deposit for the medical gowns.

After receiving these funds from the victims, Singh made additional misrepresentations and excuses to the victims, ensuring them that they would receive the medical gowns. Instead of purchasing and delivering medical gowns, Singh used the funds for personal expenses, including transferring funds to his brokerage account and using the funds for online gaming and other personal expenditures.

The government is represented by Assistant U.S. Attorney Lauren E. Repole of the Economic Crimes Unit in Newark, who credited special agents and intelligence analysts of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.

Sentencing is scheduled for February 10, 2022.

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