Thursday, November 13, 2008

$33M Mortgage Fraud Bust

A Virginia business man who sought to capitalize on the housing boom is now facing charges after it was discovered that he was liable for fraud of nearly $33M.

According to the Washington Post,

Vijay K. Taneja, 47, admitted that he defrauded banks of at least $33 million through schemes in which he created bogus mortgage loans and obtained funds for the same loans from multiple banks. Prosecutors said the case is the largest in Virginia in at least 20 years.

Taneja is a popular Indian-American businessman who has funded many Indian films and musical acts. Regardless of his patronage for the arts, Taneja faces more than seven years in prison.

Taneja was released as he awaits his January sentancing. He'll be electronically monitored to ensure that he doesn't flee.

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