Babu Ramaraj, a resident of Aldi, has been sentenced to seven years and six months in federal prison. He was found guilty of defrauding numerous investors across several states, including Virginia, Maryland, North Carolina, New Jersey, and Missouri. As a result of his actions, the investors suffered losses amounting to $15 million. This announcement was made by the U.S. Attorney’s Office, Eastern District of Virginia.
Ramaraj was the owner of DAB Inspection and Consulting Services, LLC (DAB), a small home contractor specializing in patio and deck projects, as mentioned in court records.
Ramaraj managed to persuade investors that he required substantial initial bond payments to secure these contracts. However, he faced difficulties in obtaining financing from banks due to DAB’s relatively recent establishment as a company.
According to court filings, he provided investors with forged contract award letters, invoices, financial records, and other falsified documents to support his false claims.
Between January 2020 and May 2024, Ramaraj approached individuals, including members of his cricket league in Loudoun County, with enticing investment opportunities. He made bold promises of annualized returns exceeding 30% on their investments.
Ramaraj misused the investor funds that were supposed to be used for bond payments. Instead of using the money for its intended purpose, he transferred it into his online brokerage accounts to engage in securities trading. Furthermore, he wired over $1 million to India, indulged in the purchase of luxury cars, including several Teslas, and acquired real estate.
According to the U.S. Attorney’s Office, Ramaraj not only lived a luxurious lifestyle but also suffered significant losses in the stock market, amounting to millions of dollars. Furthermore, he managed to accumulate nearly $40 million from investors, resulting in approximately $15 million in losses.
Ramaraj, who had been deceiving other investors, was finally arrested on May 30, 2024. Since his arrest, he has been held without bond as a flight risk, as confirmed by court records.
