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Financial Crimes

Palm Beach man sentenced in fraudulent internet bank guarantee scheme

WEST PALM BEACH, Fla. - A 43-year-old Palm Beach man was sentenced to more than two years in prison for charges related to a fraudulent Internet "bank guarantee" scheme following a joint investigation by U.S. Immigration and Customs Enforcement (ICE), Department of Justice, Internal Revenue Service, U.S. Postal Inspection Service, Florida Office of Financial Regulation, and the Palm Beach Police Department.

Amal Rampadaruth, who previously pled guilty to one count of wire fraud, was sentenced today by U.S. District Judge Kenneth A. Marra to 33 months imprisonment, 3 years of supervised release, $300,000 in restitution, and an additional $250,000 in related forfeitures. His father and co-defendant, Jadoomanee Rampadaruth, 66, who previously pled guilty to filing a false tax return, had been sentenced to eight months imprisonment on March 20, 2009.

Amal and Jadoomanee Rampadaruth ran a fraudulent scheme through two Florida corporations, Alps Resources Bankers, Inc. (ALPS) and Amalgamated Resources Holdings, Inc. (ARH). 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 scheme wired $300,000 to the Rampadaruths to purchase one of these alleged 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 despite the fact that the victim paid all monies requested. After repeated requests for a refund, the defendants have not refunded the money to the victim. Amal Rampadaruth pleaded guilty to the count charging a $250,000 wire he received.

In addition, Jadoomanee Rampadaruth filed a false 2006 federal income tax return on which he failed to disclose that he was involved in the operation of ALPS and ARH, and on which he failed to report money received from the business.