Minneapolis woman charged with orchestrating multi-million dollar accounts receivable factoring scheme and PPP loan fraud | USAO-MN
MINNEAPOLIS — A federal grand jury has returned an indictment against a Minneapolis woman for orchestrating an accounts receivable factoring fraud scheme and a PPP loan fraud scheme, U.S. Attorney Andrew M. Luger has announced. .
According to court documents, Khemwattie Singh, 52, was the chief executive of Global Medical Services, a Minnesota-based healthcare solutions company. Between June and October 2018, Singh and others entered into factoring agreements with MD Capital Solutions, a Florida-based investment firm, to purchase accounts receivable from Global Medical Services and Minnesota International Medicine for over $2, $6 million. Factoring is a form of short-term financing in which a business sells its accounts receivable to a third party at a discount.
According to court documents, Singh defrauded MD Capital Solutions by failing to pay debts as they were collected and falsely represented to MD Capital Solutions that no funds had been received. Instead, Singh pocketed the money, moving more than $5 million overseas to bank accounts in Morocco and shell companies she controlled.
According to court documents, in September 2019, MD Capital Solutions sued Global Medical Services in state court in Minnesota and Florida. At the end of 2019, Global Medical Services closed its doors and no longer had employees on its payroll. In April 2020, Singh submitted a false and misleading request for Paycheck Protection Program (PPP) funds on behalf of Global Medical Services requesting approximately $383,408. Despite Global Medical Services not being operational, Singh falsely stated on the application that the average monthly payroll was $153,363 and that the company had approximately 40 employees. As a result of Singh’s material lies and omissions, she received approximately $296,800 in PPP funds. Singh transferred $116,600 to his personal bank account and used the funds to pay for personal expenses, including a home loan and credit card payments.
Singh is charged with seven counts of wire fraud. She made her first appearance in United States District Court yesterday before Magistrate Judge Elizabeth Cowan Wright.
This case is the result of an investigation by the FBI and the Minnesota Commerce Fraud Bureau.
Assistant U.S. Attorney Chelsea A. Walcker is prosecuting the case.
An indictment is only an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in court.