Ultra-rich NRI Paul Parmar has been sentenced to five years in jail in a fraud case in New Jersey.

Paramjit Parmar, a 55-year-old Indian-origin man from New Jersey, has been sentenced to five years in prison, followed by three years of supervised release and payment of $125 million for his involvement in a large-scale conspiracy to defraud investors in connection with the purchase or sale of company securities. Parmar, also known as Paul Parmer, pleaded guilty in 2025.According to court documents, the fraud was committed between May 2015 and September 2017. Parmar and his conspirators, including Sotirios Zaharis alias, ‘Sam Zaharis’ and Ravi Chivukula, orchestrated an elaborate scheme to defraud a private investment firm and others of millions of dollars in connection with the financing of a transaction to take private a publicly traded healthcare company on the London Stock Exchange’s Alternative Investment Market.To fund the transaction, the private investment firm invested approximately $82.5 million and a consortium of financial institutions invested an additional $130 million, for a total of approximately $212.5 million. The co-conspirators used fraudulent means to greatly inflate the value of the Company and cause others to believe that it was worth much more than its true value.Parmar and the conspirators allegedly tried to raise millions of dollars from the public markets to finance the acquisition of various operating subsidiaries of the company. In reality, many of those entities either did not exist or had only a fraction of the operating income. Court documents state that the conspirators spent the proceeds of these secondary offerings through bank accounts they controlled and used the money for various purposes that had nothing to do with achieving the alleged goals. The conspirators made great efforts to make it appear that these funds were revenue, fabricating fake customers and altering bank statements to make it appear that the funds were coming from customers.The court said Parmar and his co-conspirators also manipulated and fabricated the bank records of subsidiaries to create a false picture of revenue streams and made misrepresentations and omissions to the private investment firm and others.Due to the actions of Parmar and his conspirators, the victims valued the company at more than $300 million for the purpose of financing a transaction to take the company private. The scheme was exposed in September 2017, when Parmar and his coconspirators resigned or were fired from their positions at the company. On March 16, 2018, the company and several of its affiliated entities filed for bankruptcy, attributing the company’s financial condition to a massive fraud scheme.