PLEASANTON – A federal grand jury has indicted three people on fraud and other charges in connection with the collapse of a truck insurance company that was once headquartered in Livermore, prosecutors announced Tuesday.
According to Northern California U.S. Attorney Ismail Ramsey’s office, 67-year-old Jasbir S. Thandi of El Sobrante, 47-year-old Sandeep Sahota of Concord and 40-year-old Jaspreet Padda of Elk Grove have been charged with crimes that led to the insolvency of Global Hawk Risk Retention Group. Prosecutors said the company provided liability insurance coverage for truck drivers and small trucking companies before it collapsed in May 2020.
All three suspects have been charged with conspiracy to commit insurance fraud and two counts of insurance fraud (making false statements to regulators). Thandi faces additional two additional insurance fraud charges (misappropriation), along with two counts of bank fraud.
Prosecutors said Thandi, who served as president and treasurer of Global Hawk, misappropriated more than $19 million of the company’s funds between 2017 and 2019. More than $1 million was sent to an entity in the British Virgin Islands, while more than $7 million was sent to outside entities controlled by Thandi.
The indictment further alleges that Thandi, Sahota and Padda submitted false statements to regulators that overstated Global Hawk’s assets by tens of millions of dollars. Sahota was the company’s vice president, while Padda was an outside investment advisor.
Prosecutors said Thandi is also alleged to have obtained bank loans of $6.4 million and $14.75 million based on false representations.
Sahota was arrested Monday and has made an initial appearance before a judge. Meanwhile, Padda was also arrested in the case.
Prosecutors said the conspiracy counts have a maximum sentence of five years in prison and a $250,000 fine. Insurance fraud counts have a maximum of 10-15 years in prison and a maximum fine of $250,000. Bank fraud counts have a maximum sentence of 30 years in prison and a $1 million maximum fine.
The U.S. Attorneys office urges anyone who may be a victim in the case to contact the office’s victim specialists by email.
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Clinton Mora is a reporter for Trending Insurance News. He has previously worked for the Forbes. As a contributor to Trending Insurance News, Clinton covers emerging a wide range of property and casualty insurance related stories.