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S. Sidhu Indicted for Alleged Bank Fraud and Aggravated Identity Theft

The federal grand jury has charged S Sidhu on 3 counts of bank fraud and 2 counts of aggravated identity theft.  It is alleged that beginning April 2019, defendant Sidhu knowingly devised and executed a material scheme to defraud U.S. financial institutions by falsely claiming that ACH withdrawals from his bank accounts were fraudulent when, in truth and in fact, he knew full well they were not.  Based on Sidhu’s false claims, the banks reimbursed him for the full amount of claimed loss, when he knew full well that he lost nothing.

It was a part of the scheme and artifice to defraud that defendant S. Sidhu knowingly caused money to be withdrawn from an originating account via an ACH withdrawal initiated from a pass-through account held in the name of C. Sidhu, his father.  As part of the transaction, the proceeds of the ACH withdrawal were deposited into the initiating pass-through account.  Further defendant Sidhu caused the proceeds to be transferred to yet other pass-through accounts, held under the name of his father, and then ultimately to a receiving account that he controlled.

It is alleged that after transferring the amount to a receiving account, Sidhu falsely claimed that the ACH withdrawals were fraudulent, that he had no knowledge of who initiated the withdrawals or where the proceeds were located and, that he received no benefit whatsoever from the withdrawals.  It is alleged that Sidhu knowingly omitted that he knew the proceeds of ACH withdrawals were deposited in pass-through accounts and he knew the proceeds were ultimately transferred to a receiving account he controlled.

As a part of the scheme and based on his false and fraudulent claims, financial institutions paid money to defendant Sidhu to reimburse him for his claimed loss when in truth defendant Sidhu lost nothing and he remained in control of the proceeds of the ACH withdrawals from the originating account.

As per the indictment, it is alleged that defendant Sidhu used more than 26 accounts in 11 financial institutions to execute the scheme and used his father’s identity, and defrauded and intended to defraud numerous financial institutions of money and property in excess of $4.5 million.

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