The former CEO of a publicly traded health care services company has been sentenced to five years in prison for his role in a $212.5 million investment fraud scheme.
US Department of Justice (DOJ) He says Parmjit Parmar, also known as Paul Parmar, pleaded guilty to conspiracy to commit securities fraud and was sentenced on May 5, 2026.
Prosecutors say Parmar, 55, of Colts Neck, New Jersey, was also sentenced to three years of supervised release and ordered to pay more than $125 million in restitution to the victims.
The Department of Justice says Parmar and his co-conspirators hatched a scheme from May 2015 through September 2017 to defraud a private investment firm and others in connection with a deal to acquire a private health care services company traded on the Alternative Investment Market of the London Stock Exchange.
To finance the deal, a private investment firm contributed approximately $82.5 million, while a consortium of financial institutions contributed another $130 million.
Prosecutors say the conspirators used fraudulent tactics to inflate the company’s value, including fake customers, altered bank statements and fabricated bank records linked to affiliated entities.
The Justice Department says the conspirators also funneled proceeds from the secondary offerings through bank accounts they controlled and used the funds for purposes unrelated to obtaining the alleged targets.
The fraud was exposed in September 2017, when Parmar and his co-conspirators resigned or were terminated. The company and its affiliated entities declared bankruptcy on March 16, 2018, attributing the financial collapse in large part to the fraud scheme.
Follow us on X, Facebook and cable
Never miss a beat – Subscribe Get email alerts delivered directly to your inbox
browse Hodel’s daily mix
 
