Indian national in New Jersey admits defrauding companies of millions of dollars of merchandise

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An Indian national admitted August 30, 2023, that he conspired with others to devise a scheme to defraud various telephone providers and insurance companies out of millions of dollars. A press release from U.S. Attorney’s Office for the District of New Jersey  says Parag Bhavsar, 42, of Newark, NJ, carried out the fraud by using stolen or fake identities to submit fraudulent claims for replacement cellular devices and then reselling those devices outside the United States

Bhavsar pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of conspiracy to commit mail fraud and one count of conspiracy to commit interstate transfer of stolen property.

According to documents filed in this case and statements made in court, the press release says:

From June 2013 through June 2019, Bhavsar was involved in a widespread scheme to defraud cellular telephone provider and insurance companies using the U.S. Postal Service mail system, as well as other third-party mail carriers.

He and his conspirators used stolen and fake identities to submit false claims of lost, stolen or damaged cellular telephones, as well as other devices, in order to obtain replacement devices, the documents say.

Bhavsar and his conspirators maintained a network of mailboxes and storage units across the United States, including in New Jersey, where the replacement devices would be shipped and then held before being sold to third parties outside the United States.

The scheme resulted in millions of dollars of losses to the cellular telephone providers and insurance companies, according to the court documents and proceedings.

The charge of conspiracy to commit mail fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greatest.

The charge of conspiracy to commit interstate transfer of stolen goods carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greatest.

As part of the plea agreement, Bhavsar will consent to the entry of a forfeiture money judgement of $10.67 million. Sentencing is scheduled for Jan. 3, 2024.