Southern District of Texas | Sugar Land small business owner billed with nine-year fraud scheme

HOUSTON – A 56-12 months-previous organization proprietor is set to show up in federal court for conspiring to dedicate mail fraud, announced U.S. Lawyer Alamdar S. Hamdani.

Sudhakar Kalaga is charged in a a person-depend legal information and facts. He is predicted to make his initial visual appeal ahead of U.S. Magistrate Yvonne Ho at 2 p.m.

He allegedly engaged in a fraud scheme that ran for nine decades.

“The penalties of unlawful bribes and kickbacks can be devastating,” reported Hamdani. “These expenses show our continued dedication to secure victims from individuals who subvert competitiveness employing fake, fraudulent and sham bids.”

The prices allege that from 2010 to 2019, Kalaga engaged in a bribery and bid rigging fraud scheme to safe development and maintenance work contracts from a corporation with a production facility in Houston.

For the duration of that time, Kalaga allegedly submitted bogus bids from non-existent building providers to the sufferer company’s facilities supervisor. This was made to make it show up his companies’ bids were the least expensive, according t0 the allegations. In return, Kalaga allegedly paid the facilities manager tens of millions of dollars in kickbacks. The information additional alleges Kalaga failed to disclose he was submitting falsified bids and paying kickbacks from the sufferer company’s own resources.

The victim corporation would not have paid out Kalaga’s companies’ invoices experienced it known about the falsified bids or the kickback payments, according to the costs.        

If convicted, Kalaga faces up to five several years in federal jail and a attainable $250,000 optimum fine.

The FBI performed the investigation. Assistant U.S. Legal professional Belinda Beek is prosecuting the case.

A prison info is a formal accusation of prison perform, not proof. A defendant is presumed harmless except convicted by way of owing course of action of regulation.

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