Cary Man Jailed for Massive Ponzi Fraud: USDOJ Report
TL/DR –
Kumar Arun Neppalli, a 57-year-old man from Cary, North Carolina, was sentenced to 44 months in prison for running a fraudulent scheme that derived investments from victims within his Indian American community. Neppalli promised to invest the funds in a real estate development project in Orange County, using his employment with the Town of Chapel Hill to convince victims that he had insider knowledge for the investment opportunity. He was ordered to pay nearly $1 million in restitution to his victims.
Cary Man Sentenced for Real Estate Fraud Scheme
A Cary resident, Kumar Arun Neppalli, 57, has been sentenced to a 44-month prison term for deceiving individuals into providing him their money through an elaborate fraud scheme, as reported by the U.S. Attorney for the Eastern District of North Carolina, Michael Easley.
Neppalli confessed to 17 wire fraud charges. According to Easley, Neppalli exploited his relationships within the Indian American community in Cary, persuading victims to give him their money under the guise of investing in a legitimate Orange County real estate venture.
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Being an employee of the Town of Chapel Hill, Neppalli used his insider knowledge claim to convince his victims. The attorney’s office said he would demand a specific sum within a short timeframe to facilitate the deal’s closure.
Neppalli would guarantee a return on the initial investment plus profit within months, often discouraging his victims from discussing the deal with others in the community or citing a non-disclosure agreement.
According to the attorney’s office, Neppalli utilized the funds from his victims to reimburse previous investors, creating the illusion of legitimate capital gains and investment returns.
U.S. Attorney Michael Easley labeled Neppalli as an ‘affinity fraudster’, targeting Indian American investors in the Triangle for their hard-earned savings. He warned investors about fraudsters like Neppalli who promise large returns within short timeframes, exploiting their membership in specific religious or ethnic groups to gain credibility and target victims.
Neppalli must now serve his 44-month sentence and pay nearly $1 million in restitution to his victims.
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