Condo sales ties to alleged $100 million Bay Area real estate fraud might not be enough to repay victims

"Acharya and Silicon Sage would frequently shift money from investors through numerous bank accounts at lightning-quick speeds to keep cash flows from drying up, according to papers filed by a court-appointed receiver. Silicon Sage and Acharya maintained 77 different bank accounts and engaged in at least 130,000 banking transactions over a period of eight years, the documents filed by the receiver show."

"'The transactions that the receiver's forensic accountant analyzed consistently demonstrated that money put into a specific entity would be transferred through multiple accounts, usually within a matter of minutes, before ending up in the account of an entity that needed to make payments that day,' the receiver stated in a U.S. District Court filing on Dec. 3. Acharya and Silicon Sage made no attempt to ensure that the money it received from investors for a specific property was used for that property."

Profits from condo sales in San Jose and Fremont tied to Sanjeev Acharya and Silicon Sage Builders are expected to be insufficient to provide restitution to investors. Federal investigators alleged Acharya defrauded hundreds of investors of more than $100 million. A court-appointed receiver found rapid transfers through many bank accounts to sustain cash flows, with Silicon Sage and Acharya using 77 accounts and at least 130,000 transactions over eight years. Forensic review of seven entities revealed complex intercompany transfers performed without regard for the original investor or creditor purpose, aimed primarily at keeping money moving.

Read at The Mercury News