CHICAGO — An Oak Brook couple, Pethinaidu Veluchamy and his wife Parameswari Veluchamy, who owned First Mutual Bancorp of Illinois Inc., a holding company for Mutual Bank, have been indicted in a scheme to hide millions of dollars in cash and assets from creditors.
According to the indictment, the couple defaulted on personal and corporate loans totaling $40 million in June 2009, and the following month, Mutual Bank was shut down by federal regulators.
Prior to the shutdown and continuing until at least November 2015, the couple hid millions of dollars in assets by falsifying documents, moving money into domestic and foreign bank accounts, and directing employees to destroy financial records, the indictment states.
The couple also transferred cash to their two adult children, with nearly $8.5 million going to one and more than $10.1 million to the other, according to the indictment.
Pethinaidu Veluchamy, 70, is charged with four counts of bank fraud, two counts of destroying records to obstruct a bankruptcy proceeding, two counts of making a false statement under oath in a bankruptcy proceeding, and one count of making a false statement in an application for a U.S. passport.
Parameswari Veluchamy, 65, is charged with four counts of bank fraud, two counts of destroying records to obstruct a bankruptcy proceeding, one count of making a false statement under oath in a bankruptcy proceeding, and one count of making a false statement in an application for a U.S. passport.
Each count of bank fraud is punishable by up to 30 years in prison and a $1 million fine. Destroying records to obstruct a bankruptcy proceeding carries a maximum sentence of 20 years.
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Key Facts
- State: Illinois
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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