Citrus County Man Pleads Guilty To Receiving Stolen Benefit Payments From The Department Of Veterans Affairs
Jacksonville, FL –U.S. District Judge Timothy J. Corrigan yesterday sentenced Karamchand “Raj” Doobay (44, Orlando) to 12 years and 7 months in federal prison for conspiracy to commit mail and wire fraud related to a scheme to defraud investors in an RV Park, and immigrant investors in a senior citizen facility, both located in Hamilton County. In addition, the Court ordered him to pay restitution to the 85 victim–investors in the amount of $8,663,264.58. Doobay was also ordered to forfeit real property that was used in the commission of the offenses.
Doobay pleaded guilty on January 31, 2017.
According to court documents, Doobay operated business entities in Hamilton County, Florida, through which he acquired a parcel of land located at 7516 SE 113th Boulevard, in Jasper, Florida. From in or about March 2009, through in or about December 2015, he solicited investors to purchase subdivided lots on the land, guaranteeing returns between 9 to 41 percent for investments in RV lots and other lots for sale by his entity (Florida Gateway Resort). Doobay utilized various bank accounts to collect funds for the purchase of RV lots that he purported to sell to investor–purchasers. However, Doobay failed to disclose that he had previously contracted to sell and purportedly sold the same lots to other investors.
Doobay was unable and failed to deliver the RV lots as promised. Despite being unable to deliver titles to the lots, he continued to represent to investors, through 2015, that “clean title is going to be provided” and that the land at Florida Gateway Resort was zoned and planned for an RV resort. Doobay routinely solicited new investor funds to pay previous investors returns while failing to disclose to the new investors that their funds would be used to pay pre-existing investors’ guaranteed returns.
Further, from about May 2011, through May 2016, Doobay conspired to commit wire fraud by promising immigrant investors, who were seeking permanent residence in the United States through the EB-5 Immigrant Investor Program, that he would use their investments for the development, renovation, and/or new construction of Senior Premier Living, a proposed retirement community in Jasper, Florida. Instead, Doobay used a portion of the immigrant investor funds to pay Florida Gateway Resort a small fraction of the promised returns and for his own personal use and enjoyment.
“Having no remorse or sympathy for those he stole from, Doobay continued to defraud victims even after his 2015 arrest,” said FDLE Tallahassee Special Agent in Charge Mark Perez. “I appreciate the efforts of investigators and the U.S. Attorney’s Office in stopping Doobay’s continued hunt for new victims.”
"This case demonstrates the lengths that some criminals will go to target and take advantage of innocent victims," said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division, "but the FBI will work equally hard to hold those criminals accountable and protect their victims both here and abroad."
This case was investigated by the Florida Department of Law Enforcement, Hamilton County Sheriff’s Office, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Kelly S. Karase.