A Florida trucking company owner will be spending a lot of time in prison for a Ponzi scheme that bilked investors out of nearly $160 million.
Sanjay Singh was sentenced to 23 years in prison after a jury found him guilty of a massive Ponzi scheme in November. The 45-year-old from Coral Springs, Fla., duped investors of his trucking company, Royal Bengal Logistics.
Beginning in January 2020, Singh represented Royal Bengal Logistics as a thriving trucking company to potential investors. Singh’s pitch involved a “truck program,” which involved the trucking company using investor funds to purchase and operate trucks, guaranteeing monthly returns exceeding 200%.
According to the indictment, Singh also offered investors separate opportunities to make investments that supported the company’s operations or its trailer manufacturing program. These other types of investments would yield guaranteed returns ranging from 20% to 40%.
Initially, investors would send funds and receive returns in their own names. Eventually, Singh requested that investors switch to going through companies they had already incorporated. By doing so, Singh was able to hide the source and nature of the funds going in and out of Royal Bengal Logistics’ bank accounts.
There was one significant problem. Royal Bengal Logistics did not earn enough revenue to cover the cost of operations, let alone satisfy obligations to investors.
To offset the negative revenue, Singh devised a classic Ponzi scheme that used funds from new investors to pay out returns to existing investors of his trucking company.
In addition to using investor funds for a Ponzi scheme, Singh also spent that money for personal use. Millions of investor dollars were put toward mortgage payments, home renovations, brokerage accounts and collateral for stock trades.
Singh’s Ponzi scheme lasted until the day of his arrest. In June 2023, he was indicted on eight counts of wire fraud.
At the same time, the Securities and Exchange Commission filed a civil suit against Royal Bengal Logistics. That case remains active. Shortly after his conviction in November, Singh informed the SEC that he was ready to settle the civil case. Terms of that settlement are still being finalized. LL
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