Karamchand ‘Raj’ Doobay, a 44-year-old Orlando man, was sentenced to 12 years and 7 months in federal prison for orchestrating a sprawling fraud scheme that ripped off 85 investors for more than $8.6 million. U.S. District Judge Timothy J. Corrigan handed down the sentence in Jacksonville, Florida, ordering Doobay to pay full restitution of $8,663,264.58 and to forfeit real property used in the crimes. Doobay pleaded guilty on January 31, 2017, to conspiracy to commit mail and wire fraud involving two major scams in Hamilton County.
From March 2009 through December 2015, Doobay operated shell entities that sold subdivided lots at a property located at 7516 SE 113th Boulevard in Jasper, Florida, under the banner of Florida Gateway Resort. He promised investors returns of 9 to 41 percent on RV and land purchases, collecting money through multiple bank accounts. But behind the glossy brochures and fake promises, Doobay was selling the same lots to multiple buyers—never disclosing that titles were already contracted or that the land wasn’t zoned for an RV resort.
Despite having no legal ability to deliver titles, Doobay kept the scam alive for years, assuring investors as late as 2015 that ‘clean title is going to be provided.’ He used a classic Ponzi tactic—funneling money from new investors to pay returns to earlier ones—while hiding the fact that fresh funds were being siphoned to cover old debts, not develop property. The entire operation was built on lies, smoke, and financial sleight of hand.
But Doobay didn’t stop there. From May 2011 through May 2016, he expanded his fraud into the federal EB-5 Immigrant Investor Program, targeting foreigners seeking U.S. residency. He promised immigrant investors their funds would develop Senior Premier Living, a luxury retirement community in Jasper. Instead, he diverted chunks of that money to cover shortfalls at Florida Gateway Resort and to finance his personal lifestyle.
‘Having no remorse or sympathy for those he stole from, Doobay continued to defraud victims even after his 2015 arrest,’ said FDLE Tallahassee Special Agent in Charge Mark Perez. ‘I appreciate the efforts of investigators and the U.S. Attorney’s Office in stopping Doobay’s continued hunt for new victims.’ The fraud persisted while Doobay was already under federal scrutiny—a brazen escalation that underscored his contempt for the law and his victims.
‘This case demonstrates the lengths that some criminals will go to target and take advantage of innocent victims,’ said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. ‘But the FBI will work equally hard to hold those criminals accountable and protect their victims both here and abroad.’ The case was investigated by the Florida Department of Law Enforcement, the Hamilton County Sheriff’s Office, and the FBI, and prosecuted by Assistant U.S. Attorney Kelly S. Karase.
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Key Facts
- State: Florida
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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