Chief Executive Officer of Pharmaceutical Company Charged in $100 Million Fraud Scheme

[nitpicker]

https://www.justice.gov/opa/pr/chief-executive-officer-pharmaceutical-company-charged-100-million-fraud-scheme

Department of Justice
Office of Public Affairs

FOR IMMEDIATE RELEASE
Friday, September 30, 2016

Chief Executive Officer of Pharmaceutical Company Charged in $100 Million Fraud Scheme

Scheme Caused the Collapse and Failure of One of Puerto Rico’s Largest Banks

The former chairman and CEO of a multinational pharmaceutical company was charged in an indictment unsealed today in connection with a fraud scheme that caused over $100 million in losses and led to the collapse and failure of Westernbank Puerto Rico (Westernbank), once one of Puerto Rico’s largest banks.
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Jack Kachkar, 53, of Key Biscayne, Florida, was charged with eight counts of wire fraud in an indictment filed on Aug. 4, 2016, in the Southern District of Florida. Kachkar was arrested and made his initial appearance today.

According to the indictment, from 2005 to 2007, Kachkar served as chairman and CEO of Inyx Inc., which was publicly traded on the Nasdaq Over-the-Counter Bulletin Board. Beginning in early 2005, Kachkar and others allegedly caused Westernbank to enter into a series of agreements to provide loans and lines of credit to Inyx and its subsidiaries in exchange for a security interest in the assets of Inyx and its subsidiaries.

The indictment alleges that Kachkar caused false and fraudulent customer invoices to be submitted as collateral for loans from Westernbank; made false and fraudulent representations to Westernbank executives about purported imminent repayments of the Inyx loans and the value of assets he pledged as a guarantee for these loans; and misappropriated and embezzled the fraud proceeds for his personal use and benefit. During the course of the scheme, Kachkar allegedly misappropriated approximately $25 million in fraudulent proceeds to his personal bank accounts and also misappropriated an additional $9.6 million in fraudulent proceeds to a bank account in the name of his associate. Kachkar also allegedly used the proceeds from the scheme to pay for, among other things, multiple high-end real estate properties in Miami, luxury vehicles and a private jet.
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[chillfactor]

1. nice to see...

top dog charged for a change instead of the underlings. Seems the CEO of wells fargo should suffer the same fate.

[TexasTowelie]

2. It's good that he is being prosecuted,

but it takes too long for the crooks to be prosecuted and go to court. It will probably be 2018 before he is sent to trial so he will have time to swindle someone else.