Allied Deals Inc.
| Company type | Private company |
|---|---|
| Industry | Financial services |
| Founded | 1989 |
| Founder | Virendra Rastogi |
| Defunct | 2002 |
| Fate | Closed by law enforcement due to Ponzi Scheme fraud |
| Headquarters | , |
Key people | Brothers Narendra and Virendra Rastogi |
| Products | Fraudulent trade-brokerage of non-ferrous metals |
Number of employees | 200 (2000) |
Allied Deals was an American company specializing in the trade-brokerage of non-ferrous metals and widely acknowledged as one of the biggest cases of Ponzi Scheme bank fraud. The scheme collapsed in 2002 and fourteen people were convicted in the United Sattes and three in the United Kingdom. This included brothers Narendra & Virendra Rastogi who controlled the company.
The company, along with affiliates: Hampton Lane, SAI Commodity, and RBG Resources operated a Ponzi Scheme in the United States of America and the United Kingdom on a virtually unprecedented scale and defrauding approximately 20 banks out of $683 USD million. Victims included: J.P. Morgan Chase, Fleet National Bank, PNC Bank, KBC Bank, Hypo Vereins Bank, Dresdner Bank, China Trust Bank, and General Bank.
Allied Deals Inc. was based in Piscataway, New Jersey.
History
[edit]The Rastogi family started trading metals in India during the 1950s. In the late 1980s, at age 20, Virendra Rastogi founded a New York office of Allied Deals and by 2002 the family was even listed in the London Sunday Times Rich List. Rastogi's younger brother Virendra ran a related company, RBG Resources based in London.[1]
Allied Deals Inc. established hundreds of sham companies to allegedly trade in non-ferrous metals, and in the process committed a litany of criminal acts including: forging documents, faking credit histories, and impersonation of another person - acting as buyers to the banks.[1]
The scheme collapsed in 2002 with the legal outcome of fifteen people arrested and charged in the United States with Nine pleading guilty; five were convicted by Jury; and one was acquitted of all charges. Two further defendants are still at large. Three people in the United Kingdom were also convicted and found guilty.[2][3][4]
References
[edit]- ^ a b "Allied Deals Inc. Global Metal Trading Ponzi Scheme". Crimes of Persuasion. 2002.
- ^ "Federal Bureau of Investigation New York Division - Press Release 2007 - Department of Justice". Archived from the original on 2010-05-27. Retrieved 2010-05-31.
- ^ Doward, Jamie (May 19, 2002). "Where there's brass, there's muck - and a $600m fraud". The Guardian. Retrieved 7 July 2017.
- ^ Bowers, Simon (June 6, 2008). "From Piccadilly to Indian cowshed: conmen jailed for $750m fraud that fooled top banks". The Guardian. Retrieved 7 July 2017.