A businessman has been arrested after he allegedly inadvertently shared plans to commit $100 million worth of fraud in an email - which is the last thing you want to do when plotting a $100 million fraud.
Kalpesh Kinariwala, an Indian-born businessman based in the United Arab Emirates is accused of bribing and embezzling $10.8 million from an iodine company called Cosayach, causing them to rack up $107 million in damages.
According to the claims, Kinariwala - who owns the firm Pantheon Group - bribed a Cosayach executive sales manager in Chile $412,000, who in turn helped Kinariwala secure higher volumes of iodine than his competitors, lie about the resale prices he was able to generate and pocket the difference.
In an email sent in 2011, Kinariwala allegedly gave the game away. He said: “I’m glad we could… spend some quality time to take our relation to the next level,” according to a document filed with the court.
The lack of discretion alarmed his new co-conspirator. “I sincerely do not like such an aggressive document you have sent me,” the sales manager replied. “I am really concerned about it. Please call me to discuss.”
Kinariwala allegedly used a network of shell companies to conceal any financial irregularities. He directed some business through a U.S. firm, American Iodine Company.
However, he and the sales manager's relationship allegedly became strained and in August 2018 he emailed to complain about supply shortages and alleged that the director was secretly selling iodine to other customers. “It is upsetting and I want to fix this quickly,” he wrote. “Hope that we will be able to resolve this without any bloodshed,” according to court documents. The sales manager then blew the whistle on the operation.
Kinariwala pleaded not guilty.
Very awkward.
