Fiji Nationals Sentenced in Multi-Million Dollar Real Estate Fraud in the U.S.

Two Fiji nationals have been sentenced to prison in the United States for orchestrating a multi-million-dollar real estate fraud scheme, the United States Attorney General’s Eastern District of California Office has reported.

Jyoteshna Karan, 52, and Praveen Singh, 45, both residing in Modesto, California, were found guilty of fraudulent real estate dealings spanning nearly a decade. Acting United States Attorney Michele Beckwith announced that Karan has been sentenced to three years and four months in prison, while Singh received a two-year sentence.

According to court records, from 2006 through 2015, Karan and Singh conspired to execute straw purchases and short sales involving approximately 15 properties from Modesto to Sacramento. A straw purchase occurs when a person buys a home on behalf of another individual to bypass financial restrictions, a practice deemed illegal in the real estate sector as it undermines lenders’ risk management safeguards.

Following their acquisition of the properties, Karan and Singh allowed them to fall into foreclosure and then arranged for short sales with lenders. They subsequently resold, or “flipped,” the homes at market rates, amassing significant profits in the process.

Their fraudulent activities inflicted over $3,000,000 in losses upon lenders, according to the U.S. Attorney General’s Eastern District of California Office. The office further revealed that Karan and Singh, both seasoned real estate professionals, manipulated unwitting participants, falsified documents, and utilized shell companies to execute their scheme.

Authorities have reiterated their commitment to prosecuting fraudulent activities within the real estate industry, emphasizing the importance of maintaining integrity and transparency to safeguard both lenders and consumers.