Shankar Subramaniam Xavier, Ponzi Scheme & Economic Development Fraud, Florida 2017

FLORIDA CRIME REPORT

Former CEO of Essex Holdings Inc. Convicted of $29 Million Ponzi Scheme and Separate $2.7 Million Economic Development Fraud in South Carolina

Miramar, FL – In a shocking turn of events, Shankar Subramaniam Xavier, a/k/a ‘Navin Xavier,’ a/k/a ‘Dr. Navin Xavier,’ 44, of Miramar, was convicted of two separate fraud schemes totaling over $30 million.

The first scheme involved nearly 100 investors who purportedly purchased interests in iron ore mining in Chile. The second scheme involved unlawfully obtaining economic development funds from the State of South Carolina.

Xavier operated Essex Holdings, Inc. from an office in Miami Gardens, raising over $29 million from nearly 100 investors for supposed investments in sugar transportation and shipping, as well as iron ore mining in Chile.

According to documents filed in court, Xavier used a false financial statement, forged documents, and false promises of fixed rates of return, to induce investors to invest with Essex Holdings. Most of the money was used for purposes other than what was promised, including to support lavish spending by Xavier and his wife for expensive jewelry, luxury vehicles, wedding expenses, and cosmetic surgery.

Xavier used new investor money to pay old investors in a Ponzi-like fashion before the scheme collapsed. The second scheme involved Xavier using Essex Holdings to obtain $1.2 million in payments and approximately $1.5 million worth of commercial real estate from the South Carolina Coordinating Council for Economic Development (SCCCED), a division of the South Carolina state government.

Xavier faces a maximum statutory sentence of twenty years in prison for each count and a fine up to $250,000. Xavier entered a guilty plea on January 13, 2017, before U.S. District Judge Darrin P. Gayles in Miami to two counts of wire fraud, in violation of Title 18, United States Code, Section 1343.

Shankar Subramaniam Xavier, a/k/a ‘Navin Xavier,’ a/k/a ‘Dr. Navin Xavier’ is scheduled to be sentenced on March 27, 2017, before Judge Gayles.

The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Alison Lehr. Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

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