Rakesh Kaushal, Wire Fraud, Maryland 2017

Rakesh Kaushal, a 66-year-old Rockville man, pleaded guilty to conspiracy to commit wire fraud in federal court, admitting to a scheme that defrauded his employer of more than $1.7 million.

According to court documents, Kaushal was employed by a company headquartered in Beltsville, Maryland, which provided construction and design services to federal government agencies. Between August 2015 and January 2017, Kaushal conspired with Ivan Victor Thrane, the owner and president of three construction companies, to defraud his employer by submitting fraudulent payment requests for work purportedly performed by the Thrane companies.

Kaushal admitted that he and Thrane caused the Thrane companies to submit payment requests to Victim Company 1, which Kaushal reviewed and approved. In fact, the Thrane companies had not performed all of the work indicated on the payment requests, and in some cases, had not performed any work on projects for which payment was requested.

Kaushal prepared the payment requests, which he e-mailed to Thrane. Thrane, or another individual at Thrane's request, signed the payment requests on behalf of the Thrane companies. Once payment was received from Victim Company 1, Thrane funneled a portion of those payments to Kaushal, typically by writing checks from his personal bank account or from the Thrane companies, which Kaushal then deposited into his personal bank account.

After Victim Company 1 discovered the overbilling in December 2016, Kaushal and Thrane attempted to conceal the scheme to defraud. Kaushal even sent an email to Thrane, pretending that Victim Company 1 had overpaid the Thrane companies, and asking for confirmation. However, the Thrane companies did not have an accountant, as claimed.

Victim Company 1 eventually initiated civil litigation against Kaushal and Thrane, and obtained a default judgment against Kaushal of $1,740,330. Kaushal then filed for Chapter 7 bankruptcy. During a meeting of creditors in the bankruptcy proceeding, Kaushal testified that he had used some of the proceeds of the fraud to purchase a car.

Kaushal, a resident of Rockville, Maryland, pleaded guilty on an unspecified date. He faces a prison sentence and fine, although the exact details are not specified. The total amount of the fraud is approximately $1.7 million, making it a significant case of white-collar crime.

As a result of his plea, Kaushal will likely face significant consequences, including a prison sentence and a substantial fine. The case highlights the importance of transparency and accountability in business dealings.

Source: https://www.justice.gov/usao-md/pr/rockville-man-pleads-guilty-federal-court-scheme-defraud-his-employer-more-17-million