The former CEO of a publicly traded healthcare services company has been sentenced to five years in prison for his role in a $212.5 million investment fraud scheme.
The U.S. Department of Justice (DOJ) 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 victim restitution.
The DOJ says Parmar and his co-conspirators orchestrated a scheme from May 2015 through September 2017 to defraud a private investment firm and others in connection with a transaction to take private a healthcare services company traded on the London Stock Exchange’s Alternative Investment Market.
To fund the transaction, a private investment firm contributed about $82.5 million, while a consortium of financial institutions contributed another $130 million.
Prosecutors say the conspirators used fraudulent methods to inflate the value of the company, including phony customers, altered bank statements and fabricated bank records tied to subsidiary entities.
The DOJ says the conspirators also funneled proceeds from secondary offerings through bank accounts they controlled and used the money for purposes unrelated to acquiring the purported targets.
The scam was uncovered in September 2017, when Parmar and his co-conspirators resigned or were terminated. The company and affiliated entities filed for bankruptcy on March 16, 2018, attributing the financial collapse in large part to the fraud scheme.
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