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Financial Crimes
06/17/2008

Father and son indicted for fraudulent internet bank guarantee scheme

Financial services scheme costs investors over $4.8 million

MIAMI - U.S. Immigration and Customs Enforcement (ICE) and other law enforcement agencies, including the Internal Revenue Service, assisted in an investigation that led to the indictment of defendants Amal Rampadaruth, 42, the president and CEO of Alps Resource Bankers Inc. (ALPS) and Amalgamated Resources Holdings, Inc. (ARH), both financial services companies in Palm Beach, Fla., and his father, Jadomanee "Dutt" Rampadaruth, 66, of Palm Beach, Fla. The indictment charges both defendants with two counts of wire fraud, in violation of 18 U.S.C. § 1343, and related forfeiture.

As set forth in the indictment, Amal Rampadaruth and Jadomanee Rampadaruth ran a fraudulent scheme through two Florida corporations: Alps Resources Bankers, Inc., and Amalgamated Resources Holdings, Inc. The defendants offered what they claimed were various financial products, including alleged "bank guarantees," through ALPS and ARH. They claimed the alleged "bank guarantees," purportedly from foreign financial institutions, could be used by purchasers as collateral to obtain substantial loans from domestic financial institutions, and as assurance to domestic lenders that any financing granted would be repaid if any default on such loans should occur. The defendants advertised their financial services through a website.

In July and August, 2005, one victim of the defendants' fraud, identified in the indictment as "Victim N.P.," wired $300,000 to the defendants to purchase one of these "bank guarantees." The victim was attempting to obtain collateral for a substantial loan from a domestic lender in order to obtain financing for a multi-million dollar project. The defendants never delivered the alleged "bank guarantee" to Victim N.P.'s lender despite the fact that Victim N.P. paid all monies requested. Despite repeated requests for a refund, the defendants have not refunded the money to Victim N.P.

In addition to the criminal charges, the indictment seeks to forfeit $300,000 representing the proceeds the defendants received from their fraud. Each wire fraud count carries a statutory maximum penalty of twenty (20) years imprisonment, a $250,000 fine, supervised release of up to three (3 years) and restitution.

R. Alexander Acosta, United States Attorney for the Southern District of Florida, commended the investigative efforts of the Internal Revenue Service, U.S. Immigration and Customs Enforcement, U.S. Postal Inspection Service, the State of Florida - Office of Financial Regulation, and the Palm Beach Police Department. The case is being handled by Assistant United States Attorneys Carolyn Bell and Antonia Barnes.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.