He left a lot of people holding the bag.
In a dramatic fall from grace, Indiana-based businessman Najeeb Khan has been sentenced to 97 months in prison following a massive check-kiting scheme. Khan, who once reveled in an opulent lifestyle bolstered by his fraudulent activities, has now been ordered to repay over $150 million in restitution.
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Between 2011 and 2019, Khan defrauded numerous clients through his payroll processing company based in Elkhart, Indiana. He manipulated financial transactions between three banks, including Key Bank in Cleveland, generating artificial funds in his accounts through hundreds of checks and wire transfers backed by insufficient funds. This deceptive practice led to financial ruin for about 1,700 clients who lost substantial amounts meant for payroll taxes. Some even had to resort to drastic measures like taking out credit lines or downsizing their workforce to cover their IRS dues.
Khan's greed knew no bounds as he splurged on extravagant vacations, lavish properties across Arizona, Michigan, Florida, and Montana, and high-value assets including airplanes, boats, and a helicopter. However, his most notable expenditure was on a remarkable collection of classic cars, featuring gems like the 1952 Ferrari 225 S Berlinetta, a 1953 Fiat 8V Supersonic by Ghia, and a 1963 Jaguar E-Type Lightweight. These prized automobiles, part of the so-called Elkhart Collection, were later auctioned by RM Sotheby’s, fetching over $44 million – with seven vehicles alone commanding seven-figure prices. The proceeds from this auction were reportedly used to compensate Khan's victims.
In addition to his prison term of over eight years, Khan faces a hefty financial burden. He is accountable for $121 million in restitution to Key Bank, $27 million to his former clients, and approximately $9.8 million in back taxes. Post-incarceration, he will be under supervised release for three years. Khan's story is a cautionary tale of how unchecked greed and financial deception can lead to severe consequences, stripping away the very luxuries it once afforded.
Source: AP News