Healthcare CEO Guilty in $212 Million Investment Fraud Tied to London-Traded Healthcare Firm

Parmjit “Paul” Parmar admitted to orchestrating a scheme to inflate a company's value and defraud investors in a high-stakes effort to take the firm private.

NEWARK, N.J. — The former chief executive officer of a healthcare services company admitted guilt in federal court this month to participating in a complex investment fraud scheme that misled investors and financial institutions out of over $200 million, U.S. Attorney Alina Habba announced.

Parmjit Parmar, also known as “Paul Parmar,” 55, of Colts Neck, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo to one count of conspiracy to commit securities fraud during a hearing held in Newark federal court.

According to court filings and public statements, from May 2015 through September 2017, Parmar and his co-conspirators — including Sotirios “Sam” Zaharis and Ravi Chivukula — engaged in a wide-ranging scheme to inflate the valuation of a publicly traded healthcare company (Company A) listed on the London Stock Exchange’s Alternative Investment Market. Their intent was to deceive investors and lenders in a transaction to take the company private.

To facilitate the privatization, a private investment firm contributed approximately $82.5 million, while a consortium of financial institutions added another $130 million, bringing the total deal value to roughly $212.5 million. Parmar and his associates allegedly falsified revenue, customer data, and bank records to misrepresent the company’s financial health and attract funding.

Investigators revealed that the group fabricated subsidiary companies—some of which were non-operational or entirely fictitious—and misrepresented their income. The proceeds from secondary public offerings were then diverted into accounts controlled by the conspirators and used for unrelated personal and financial purposes. In a further attempt to mask the fraud, the group doctored financial records and created phony customers to make the company appear legitimate.

As a result of these misrepresentations, investors and lenders valued the company at more than $300 million, a figure far above its true worth. The fraud came to light in September 2017, leading to the resignation or removal of Parmar and his co-defendants, and the March 2018 bankruptcy filing of Company A and several affiliated entities, which cited the fraudulent scheme as a primary cause of collapse.

The charge of conspiracy to commit securities fraud carries a maximum penalty of five years in prison and a $250,000 fine. Under the terms of his plea agreement, Parmar agreed to forfeit various properties and bank assets and will be required to pay restitution to victims as determined by the court.

The case was investigated by the Federal Bureau of Investigation, with key contributions from the FBI Headquarters Forensic Accountant Support Team. It is being prosecuted by Assistant U.S. Attorneys Vinay S. Limbachia, George M. Barchini, and Kelly M. Lyons of the Criminal Division in Newark.

Charges against co-defendants Zaharis and Chivukula remain pending. They are presumed innocent unless and until proven guilty in a court of law.