The Cornerstone Report: Volume 3, Issue 1

Newark ICE Agents Seize $5.7 Million, Luxury Vehicles in Massive Benefits Fraud Case

A Lexus sedan (above) and a Mercedes SUV, with a combined value of $100,000, were among the seizures in this investigation made by ICE agents.

A citizen of India living in New Jersey is in federal custody and ICE agents have seized $5,724,592 in a massive immigration benefit fraud investigation.

Narendra Mandalapa has been charged with fraud and misuse of visas, violations of 18 USC, Section 1546. The charges were filed in U.S. District Court in Newark. Mandalapa is in the custody of the U.S. Marshals Service.

The investigation is a product of a joint anti-fraud initiative undertaken by ICE’s Office of Investigations, U.S. Citizenship and Immigration Services (USCIS) and the Department of Labor’s Office of the Inspector General.

The investigation began when a special fraud detection unit of USCIS uncovered a pattern of fraud in petitions for immigration benefits submitted by Mandalapa through one of his companies. USCIS referred the information to the ICE Benefits Fraud Unit for analysis. ICE’s subsequent criminal investigation resulted in the arrest and seizures.

During the investigation, ICE agents discovered that Mandalapa filed nearly 1,000 possibly fraudulent labor-based petitions on behalf of Indian and Pakistani nationals seeking to enter or remain in the United States. The petitions were for skilled computer workers. Both USCIS and ICE continue to investigate those aliens who received fraudulent immigration benefits. Investigators are also working to determine the number of persons who fraudulently entered the country and may have received fraudulent labor benefits.

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ICE investigators found that two shell companies in New Jersey owned by Mandalapa were created solely for the purpose of filing fraudulent labor-based petitions for foreign workers. During the investigation, agents armed with search warrants seized computers and documents from the corporate address of Cybersoftec, Inc. Agents believe that at least $2.1 million came from fees paid by individuals, often in the form of international wire transfers or personal checks, seeking fraudulent benefits. Since the accounts were used to hide those illegal profits, ICE, through judicial order, seized all money in the accounts. The assets seized come from four bank accounts in Edison, N.J., and two brokerage accounts in New York City. Also included in the seizures were a Mercedes SUV and a Lexus sedan with a combined value of $100,000.

ICE Expands Financial Investigations to Combat Growing Money Laundering Threats

Newark ICE Agents Seize $5.7 Million, Luxury Vehicles in Massive Benefits Fraud Case

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ICE Dismantles Major Narco-Money Laundering Group in Puerto Rico

Man Pleads Guilty to Operating Unlicensed Money Transmitting Business

Cornerstone is U.S. Immigration and Customs Enforcement's (ICE) comprehensive investigative initiative for fighting financial crime, trade fraud and intellectual property crime.

The Cornerstone Report is a quarterly bulletin highlighting key issues related to ICE financial and trade investigations.

The Cornerstone Report covers a broad range of topics related to financial investigations and potential vulnerabilities in the financial and trade sectors.

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