NRI CEO jailed for 2 years In Prison For
Tax And Conspiracy Charges
Los Angeles, August 30, 2023
NRIpress.club/Ramesh/ A.Gary Singh
Kishore Kethineni, the CEO of multiple software development and IT services companies in the Bay Area, was sentenced to two years in prison for his role in a conspiracy to commit bank fraud and for his failure to pay over more than $2 million in employment taxes, announced United States Attorney Ismail J. Ramsey, Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp, and Internal Revenue Service—Criminal Investigation (IRS-CI) Special Agent in Charge Darren Lian of the Oakland Field Office. The sentence was handed down by the Hon. Edward J. Davila, United States District Judge.
Kethineni, of Dublin, Calif., pleaded guilty to the charges on February 21, 2023. In pleading guilty, Kethineni admitted that he conspired with his two brothers to engage in a scheme in which they fraudulently obtained over $3.1 million in loans under the Paycheck Protection Program (PPP).
The PPP is a COVID-19 pandemic relief program administered by the Small Business Administration (SBA) that provided forgivable loans through third-party lenders to small businesses for payroll and certain other expenses. Kethineni was the sole owner and CEO of four of the companies involved in the scheme: BiteGate, Inc., Dinenamics, Inc., Neelinfo, Inc., and TechPMC, Inc. His brothers were the owners of the three other companies involved: Boxstertech, Inc., Hiretechforce, Inc., and TechGlobalSystems, Inc. From April 2020 through May 2021, Kethineni and his brothers submitted multiple PPP loan applications on behalf of their various respective companies, in which they made fraudulent representations and provided falsified payroll data and records to obtain loans and loan forgiveness under the program.