Exec in $180M Check-Kiting Scheme Gets 8 Years

A businessman who orchestrated a $180 million check-kiting scheme and used the proceeds to stay a lavish way of life and amass one of many world’s most revered basic automotive collections has been sentenced to greater than eight years in jail.

Najeeb Khan, 70, of Edwardsburg, Michigan, instructed a federal choose Thursday that he was “blinded by greed” to hold out the scheme and purchase greater than 250 automobiles, in addition to airplanes, boats and a helicopter, based on Besides receiving a 97-month sentence, he should pay $121 million in restitution to Cleveland-based KeyBank, $27 million to shoppers and $9.8 million in again taxes.

Authorities have mentioned Khan carried out the fraud from 2011-2019 whereas rising his payroll processing enterprise in Elkhart, Indiana. He funneled dozens, typically a whole bunch, of checks and wire transfers with inadequate funds by way of three banks, artificially inflating the quantity in his accounts. He siphoned off about $73 million for himself.

He used the cash to fund a lavish way of life that included costly holidays, mansions in Arizona and Michigan and properties in Florida and Montana, in addition to planes and yachts. His huge automotive assortment included pristine classic Ferraris, Fiats and Jaguars.

Khan had plead responsible to financial institution fraud and tried tax evasion. His attorneys mentioned he had helped his victims get well some funds, in half by promoting off his automotive assortment that fetched about $40 million at public sale.

Some victims needed to pay the IRS or their workers out of their very own pockets or take out traces of credit score, prosecutors mentioned. Others laid off workers.

Copyright 2023 The Associated Press. All rights reserved. This materials is probably not printed, broadcast, rewritten or redistributed with out permission.

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