Twin Brothers Sentenced For Major Fraud Against The Government
CHATTANOOGA, TE (STL.News) Today, Rahim and Karim Sadruddin, 35, were sentenced to 50 months imprisonment by the Honorable Travis McDonough, United States District Judge for the Eastern District of Tennessee at Chattanooga.
As part of the plea agreement filed with the court, the Sadruddins each agreed to plead guilty to an Information charging them with two counts of wire fraud involving a Presidentially declared major disaster and emergency in violation of Title 18, United States Code, Section 1343, and one count of conspiracy to commit money laundering in violation of Title 18, United States Code, Sections 1956(h) and 1957. The Sadruddins were charged as part of a scheme greater than $30 million to defraud the Federal Emergency Management Agency (“FEMA”), Tennessee Valley Authority (“TVA”), and the state of Tennessee related to the procurement of tarps for hurricane victims in Puerto Rico, and the fraudulent acquisition of state and federal grant funds for the purpose of establishing a textile manufacturing plant in Pikeville.
Judge McDonough sentenced each defendant to 50 months of imprisonment, followed by five years of supervised release, and $300 in special assessments. Moreover, as part of their guilty pleas and plea agreements with the United States, the defendants will forfeit numerous items, including houses, a vehicle, bank accounts, and other items of personal property that were obtained with proceeds of the fraud; they will also be required to pay full restitution in the amount of over $7 million to the State of Tennessee, TVA, and FEMA.