Trucking Company Exec Accused of Ponzi Scheme
Companies do not always do the right thing. Sometimes they waste the money of others, poorly investing it with promises that it will someday be returned.
A South Florida trucking executive was recently sentenced to 23 years in federal prison for orchestrating a Ponzi scheme that defrauded investors of more than $100 million. In November 2024, Sanjay Singh, the founder of Royal Bengal Logistics, was convicted in November on eight counts including wire fraud, money laundering, and conspiracy. His scheme began in January 2020 and was still active when he was indicted in June 2023.
Jurors took just one hour to reach a guilty verdict in the case. Singh had grown his company to a fleet of 200 trucks, but prosecutors say he used the business to enrich himself. In a sentencing memo, the Justice Department said Singh raised $158 million but diverted much of it for personal use, including reckless investments in meme stocks. He lost more than $12 million of investor funds in the market.
Over four years, Singh allegedly misled investors about the company’s financial health while continuing to solicit new investments. When the scheme began to unravel, prosecutors say he tried to offload the business to his general counsel in an attempt to evade accountability.
According to the Justice Department, more than 2,000 victims were affected, many of them working-class Haitian residents of South Florida. Prosecutors sought a 25-year sentence.
Though the U.S. Attorney’s Office had not issued a formal statement at the time of publication, multiple sources confirmed the 23-year sentence.
Singh’s defense argued that, as a first-time, nonviolent offender, he posed a low risk of reoffending. They claimed that the lengthy sentence recommended by federal guidelines would be excessive, citing the severe personal and financial toll Singh has already endured.
One victim, whose name was redacted from court documents, described the devastating consequences of Singh’s fraud: “Because of your greed and inhumane actions, I am entering the workforce again at age 66… to meet financial obligations and support our extended families.” The victim added that the emotional and financial strain had deeply affected both them and their loved ones.
Fraud can indeed have severe and lasting consequences on victims, impacting nearly every aspect of their lives. Financially, victims often lose significant savings, retirement funds, or investment capital, leaving them unable to meet basic needs or long-term goals. Emotionally, fraud can cause anxiety, depression, and feelings of betrayal, especially when trust was manipulated. Victims may face damaged credit, legal complications, or even have to return to work late in life. The psychological toll can also strain relationships and reduce quality of life.
Seek Legal Help
Fraud is often perpetrated by greed. When business owners get greedy, it can cause them to engage in all sorts of illegal activities.
Customers and other businesses lose out when companies engage in fraud schemes. If you have been affected, contact Fort Lauderdale business torts lawyer Edward J. Jennings, P.A. We can provide advice and representation at all stages of litigation. Call 954-764-4330 or fill out the online form to schedule a consultation.
Source:
freightwaves.com/news/south-florida-trucking-company-owner-gets-lengthy-prison-sentence-for-ponzi-scheme
