BOSTON (AP) — The former owner of a Boston-area chain of high-end jewelry stores is facing wire fraud charges after authorities say he created bogus inventory reports for lenders to receive larger loans.
Raman Handa, formerly of Lexington, owned now-closed Alpha Omega Jewelers.
Federal prosecutors say in 2007 when the chain had trouble keeping up with loan payments, the 67-year-old Handa created a scheme to defraud lenders by lying about inventory reports used to determine credit limits.
The reports included luxury watches and other items the chain didn’t actually have.
After Handa left the U.S. for India in 2007, the chain’s lender gained control of the company and discovered more than $7 million in missing or unaccounted for inventory.
Handa was arrested on Feb. 21 at the Los Angeles International Airport as he returned from India.