Ex-auditor at OC actual property company admits to $2.7 million embezzlement scheme – Orange County Register

SANTA ANA — A former government at an Orange County business actual property company pleaded responsible Monday to embezzling greater than $2.7 million from his employer by submitting bogus invoices for firms managed by his household and pals, whose providers by no means have been carried out.

Varun Aggarwal, 41, of Irvine, pleaded responsible to at least one depend of wire fraud, in response to the U.S. Lawyer’s Workplace.

U.S. District Decide Cormac J. Carney set a Jan. 22 sentencing listening to, at which period Aggarwal will resist 20 years behind bars, in response to federal prosecutors.

In response to his plea settlement, from 2008 to January 2022, Aggarwal labored within the inside auditing division of the Newport Seashore-based KBS Realty Advisors and rose to the extent of the division’s director. Starting at the least as early as January 2012 and persevering with till January 2022, Aggarwal used his place at KBS to embezzle his employer’s cash, he admitted.

As a member of the corporate’s inside auditing group, Aggarwal was conversant in KBS’s insurance policies and procedures for funds to distributors. Aggarwal used his data of KBS’s insurance policies and procedures to have his family and friends function authorised distributors to do contracting work for KBS.

After a number of of those firms turned authorised distributors for KBS, Aggarwal used the authorised distributors to submit fraudulent invoices for consulting providers that weren’t carried out for the corporate. He then funneled the funds on the invoices from KBS to his personal financial institution accounts — by the authorised distributors — at instances with out informing the distributors that the invoices and the funds on the invoices have been for his personal profit, in response to his plea settlement, filed in Santa Ana federal court docket.

In finishing up the scheme, Aggarwal fraudulently obtained about $2.72 million from KBS that he triggered to be paid to the authorised distributors that in the end went to himself.

Aggarwal resigned from KBS in January 2022 after the corporate started investigating the invoices, in response to court docket paperwork.