San Jose Resident Charged In Embezzlement Scheme At Emeryville Medical Device Company
Former Employee Embezzled More than $2 million from 2015 to 2017
OAKLAND – Dinesh Shankar was arrested today on mail fraud charges stemming from an alleged embezzlement scheme, announced Acting United States Attorney Alex G. Tse and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett.
According to the indictment unsealed this morning, Shankar, 40, of San Jose, Calif., embezzled more than $2 million from his former employer, an Emeryville, Calif., company that develops medical devices. According to the indictment, Shankar’s position at the company involved obtaining laboratory testing and quality assurance services for the company’s medical devices. Shankar allegedly used his role at the company to initiate a scheme in January 2015, in which he created six fake entities, rented post office boxes associated with each entity, and opened bank accounts under the names of the six entities. The indictment alleges that Shankar submitted false invoices to the company for payment to the purported vendors, and that after the invoices were approved the company sent checks, made out to the fake entities, to the post office boxes rented by Shankar. In total, the payments to these entities were more than $2 million, according to the indictment.
Shankar was charged with six counts of mail fraud, in violation of 18 U.S.C. § 1341.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the maximum penalty for each count of mail fraud is twenty years’ imprisonment and a fine of $250,000 or the greater of twice the gross gain or twice the gross loss. Any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Shankar made his initial federal court appearance in Oakland today before U.S. Magistrate Judge Donna M. Ryu. Magistrate Judge Ryu scheduled the defendant’s next appearance for April 24, 2018, before Magistrate Judge Kandis A. Westmore, for identification of counsel.
Assistant U.S. Attorney Lloyd Farnham is prosecuting the case with the assistance of Bridget Kilkenny and Claudia Hyslop. The prosecution is the result of an investigation by the FBI.