MINNEAPOLIS – A Minneapolis woman faces seven counts of wire fraud in connection with fraudulent schemes, including one involving a PPP loan.
The US Department of Justice said Khemwattie Singh, 52, was CEO of a Minnesota-based healthcare solutions company called Global Medical Services (GMS). Singh and other members of the company entered into factoring contracts with a Florida-based investment firm to purchase GMS’s accounts receivable for over $2 million.
Singh is accused of failing to pay that company more than $5 million in subsequent claims, funneling the money to overseas accounts and shell companies.
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The Florida company eventually sued GMS, which was then shut down and removed all of its employees from its payroll.
The DOJ says Singh then ‘submitted a false and misleading claim for Paycheck Protection Program (PPP) funds’ on behalf of the company in 2020 for $383,408 – claiming the company had 40 employees and an average monthly payroll of over $150,000.
In total, Singh received nearly $300,000 in PPP funds, of which $116,600 was transferred to his own bank account to pay “a home loan and credit card payments.”
Singh made his initial appearance Monday in US District Court.
WCCO Staff
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