The Securities and Exchange Commission (SEC) has charged Babu Ramaraj of Aldie, Virginia, with defrauding more than 70 investors out of approximately $31 million through his company, DAB Inspection and Consulting Services LLC. The SEC alleges that from February 2019 to May 2024, Ramaraj misled investors with promises of 40-60 percent annual returns by claiming he would use their funds to finance lucrative government contracts. Instead, he allegedly fabricated contracts and financial documents to support these false claims.
According to the SEC’s complaint, Ramaraj used the investor funds to purchase luxury items such as automobiles and jewelry, engage in unprofitable trading, and make Ponzi-like payments to earlier investors. The SEC asserts that the government contracts Ramaraj cited never existed, and his investments were a front for personal gain.
The SEC is seeking an injunction, disgorgement of funds, and penalties against Ramaraj. Additionally, he faces a bar from serving as an officer or director of a public company. The complaint, filed in the U.S. District Court for the Eastern District of Virginia, accuses Ramaraj of violating antifraud provisions of federal securities laws.
In a parallel action, Ramaraj also faces criminal charges for wire fraud and unlawful monetary transactions, with proceedings pending in the U.S. Attorney’s Office for the Eastern District of Virginia. The SEC’s investigation was supported by various agencies, including the FBI and the Virginia State Corporation Commission.
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