Nomura Securities International Agrees to Pay $35 Million Penalty Stemming from Its Participation in Securities Fraud Scheme
John H. Durham, United States Attorney for the District of Connecticut, and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations (HSI) in Boston, today announced that KISHORE BABU AMMISETTI, 30, a citizen of India, has been charged by federal criminal complaint with fraud offenses stemming from an alleged “provisional credit” scheme.
As alleged in the complaint, Ammisetti used Facebook Marketplace and other media to victimize individuals, primarily of Indian decent, who advertised items for sale or rooms for rent. Through this scheme, Ammisetti would contact a victim to express interest in purchasing an item or renting a room. He would then gather the victim’s bank account information and other personal information under the guise of making a deposit to the victim’s bank account. He also would offer to provide a “deposit” directly into the victim’s account via a Peer-to-Peer (P2P) transfer.
The complaint further alleges that Ammisetti would then contact the victim’s bank and, posing as the victim, would claim to have made an ATM deposit that did not register on the victim’s bank account. While researching the “unregistered deposit,” the bank would credit the victim’s account with a provisional credit. Ammisetti would then contact the victim and claim that the provisional credit to the victim’s bank account was a mistaken transfer by Ammisetti to the victim’s account. Ammisetti would then request either a full or partial refund of that money, which the victim would provide via a P2P transfer. After the bank determined that there was no unregistered deposit to the victim’s account, the funds provided as a provisional credit would be removed from the account.
It is alleged that Ammisetti stole at least $800,000 from more than 400 victims through this scheme. The investigation has revealed that Ammisetti often operated this scheme while staying at casino hotels in Connecticut.
Ammisetti was arrested on January 25, 2019. He appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and was ordered detained.
It is alleged that Ammisetti entered the U.S. in 2013 on a student visa, which was revoked in 2014.
The complaint charges Ammisetti with bank fraud, an offense that carries a maximum term of imprisonment of 30 years, and wire fraud, which carries a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that a criminal complaint is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by HSI with the assistance of the Mohegan Tribal Police. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.