Man duped couple into giving $1.3M for fake fabric company — to spend on porn, feds say
A couple in Virginia who believed they were pouring capital into a high-end fabric company actually bankrolled a 48-year-old man’s online porn habits, federal prosecutors said.
Their would-be business partner, Manish Singh, pleaded guilty to wire fraud and identity theft charges in federal court Thursday.
Singh was three days into his trial when he entered a plea agreement with the government resolving allegations he operated a million-dollar investment fraud scheme, according to the U.S. Attorney’s Office for the Eastern District of Virginia.
“In the midst of a jury trial, the defendant admitted that he deceived victims into believing they were investing more than $1.2 million in a high-end fabric design business, when in reality, he fraudulently used their money to fund personal expenses,” U.S. Attorney Raj Parekh said in a news release.
Singh faces up to 20 years in prison when he’s sentenced July 30. Public defenders appointed to represent him declined to comment Friday.
A grand jury indicted Singh in February 2020, court filings show.
According to that indictment, the fraud began during the summer of 2016 when Singh, who is from Maryland, reportedly partnered with a Virginia couple to start a high-end fabric company called Sanaa Home and Lifestyle.
“The couple was to provide the capital for the business, and Singh was to contribute his expertise and contacts in the fabric industry,” prosecutors said.
Singh reportedly received $1.26 million over the next two years. During that time, he’s accused of sending doctored expense sheets showing their money was being used to pay contract employees, front manufacturing costs in India and ship the fabric to brand-name companies in the U.S.
Prosecutors said he told them returns on their investment were being rolled over to pay for new fabric orders.
At one point, Singh reportedly told the couple their money was “tied up in a massive unpaid $2 million invoice sent to a company called B&J Fabrics.” Prosecutors said he gave them a contact at the company to talk to about the missing funds.
The owner of B&J Fabrics was expected to testify at Singh’s trial and says he never placed an order for their fabrics, court documents show. His testimony would also indicate the email address Singh reportedly gave the couple was not his and that he had never communicated with them.
That’s because financial records and interviews with FBI agents showed Singh was spending the money on everything but their supposed fabric business — including over 1,300 transactions on an adult entertainment website, a Lexus and his rent, prosecutors said.
He reportedly told investigators the money was used in part to tip performers on the website, which was identified in court documents as “myfreecams.”
Singh’s trial was slated to begin Oct. 20 — but he didn’t show.
His defense attorneys said Singh was brought to a hospital in Maryland the night before, though it was not immediately clear for what reason. The judge issued a bench warrant for his arrest as soon as he was discharged.
The docket shows Singh was arrested Nov. 6 and released again in December. His bond was set at $250,000.
Singh’s trial was eventually reset for May 11. Three days into the trial and before the government finished presenting its case, Singh pleaded guilty to all counts.
Exterminator stole $1.7M from widow by posing as her son — and played the lottery, feds say
Power company worker siphoned $1.6 million in customer checks, Virginia officials say
A self-admitted ‘bad guy’ ran a $21 million investment fraud in Miami, feds say
