RALEIGH, N.C. (WNCN) — A 56-year-old Cary man was arrested Tuesday upon the unsealing of a 23-count indictment in connection with an investment fraud scam.
According to the indictment, Kumar Arun Neppalli allegedly relied on his good standing within the Indian-American community in Cary to defraud at least 12 victims or sets of victims into giving him money under the false pretense that he would be investing their money in a legitimate real estate development in the Orange County, according to U.S. Attorney Michael Easley.
Neppalli allegedly used the funds from these victims to pay back earlier investors who believed that he was returning their original investment and legitimate capital gains. Returning capital to earlier investors by defrauding new investors is commonly known as a “Ponzi” scheme.
“We are committed to protecting the investing public from financial schemes,” Easley said. “The U.S. Attorney’s Office is working closely with the FBI to identify, investigate, and pursue those who cheat people out of their hard-earned money.”
As further alleged in the indictment, Neppalli would typically call the victims on the phone or talk to them in person to describe a local real-estate investment opportunity, usually in Orange County, Easley said.
Neppalli allegedly leveraged his employment with the Town of Chapel Hill to convince victims that he…
