Prosecutors announced the indictment of an Aldie, Virginia, man for his alleged role in a years-long loan fraud scheme that defrauded dozens of investors in Maryland, Virginia and other jurisdictions.
Prosecutors announced the indictment of an Aldie, Virginia, man for his alleged role in a years-long loan fraud scheme that defrauded dozens of investors in Maryland, Virginia and other jurisdictions.
A federal grand jury indicted Babu Ramaraj, 46, on charges of wire fraud and unlawful financial transactions in late June, according to a press release from the U.S. Attorney’s Office for the Eastern District of Virginia.
According to court documents, Ramaraj and his wife own DAB Inspection and Consulting Services, a home construction company that does patio and deck work.
Ramaraj reportedly told investors that the small, modestly performing company had won lucrative government contracts with agencies including the Federal Aviation Administration and the Virginia Department of Transportation.
He also reportedly told investors that his businesses were “joint venture partners in the Washington, D.C. Water and Clean Rivers Project” and had made a combined profit of “tens of millions of dollars each” from “engineering inspection work for large infrastructure projects.”
Officials argued that Ramaraj needed large upfront bonds to secure these jobs, but that DAB was unable to obtain bank loans because it was too new and needed the money sooner than banks could provide it.
According to the report, between January 2020 and May 2024, Ramaraj sold loans at high interest rates to investors “including members of the Loudoun County Cricket League.”
“Ramaraj allegedly used the later investment funds to pay promised returns to his original investors, enticing them to continue investing and encouraging other friends and family to invest as well,” the press release said.
Ramaraj allegedly submitted forged closing letters, invoices and DAB financial records to trick investors into believing the fraud was genuine.
The prosecution alleges that after getting his hands on the money, the defendant squandered it all.
Instead of paying for the bonds as promised, Ramaraj allegedly transferred the money into brokerage accounts for himself and his wife and engaged in “securities trading”.
Prosecutors said DAB used this tactic to raise “a total of more than $20 million,” transferring more than $1 million to an account in his wife’s name in India. The indictment also alleges that Ramaraj used the money to buy several cars, acquire real estate and make other payments to support his lifestyle.
“If convicted, Ramaraj faces up to 20 years in prison for each count of wire fraud and up to 10 years in prison for each count of unlawful financial transactions,” the Justice Department said.
The charges come after residents of North Carolina and Georgia filed federal complaints against Ramaraj. The North Carolina plaintiffs allege that Ramaraj defrauded them of approximately $400,000 between July 2022 and July 2023, while the Georgia residents allege that Ramaraj defrauded them of $200,000.
Ramaraj is scheduled to appear in federal court on July 12 to be arraigned.
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