PLEASANTON – A federal grand jury has indicted three people on fraud and other charges in connection with the collapse of a truck insurance company once headquartered in Livermore, prosecutors announced Tuesday.
Northern California US Attorney Ismail Ramsey’s office said 67-year-old Jasbir S. Thandi of El Sobrante, 47-year-old Sandeep Sahota of Concord and 40-year-old Jaspreet Padda of Elk Grove were charged with crimes that led to the insolvency of Global Hawk Risk Retention Group. Prosecutors said the company provided liability insurance to truck drivers and small trucking companies before it collapsed in May 2020.
All three suspects have been charged with conspiracy to commit insurance fraud and two counts of insurance fraud (making false statements to regulators). Thandi faces a further two counts of insurance fraud (misappropriation) and two counts of bank fraud.
Prosecutors said Thandi, who served as president and treasurer of Global Hawk, misappropriated more than $19 million of the company’s funds between 2017 and 2019. More than $1 million was sent to an entity in the British Virgin Islands, while more than $7 million was sent to outside entities controlled by Thandi.
The indictment also alleges that Thandi, Sahota and Padda submitted false statements to regulators that overstated Global Hawk’s assets by tens of millions of dollars. Sahota was the company’s vice president, while Padda was an outside investment adviser.
Prosecutors said Thandi also allegedly obtained bank loans of $6.4 million and $14.75 million based on false statements.
Sahota was arrested on Monday and made an initial appearance before a magistrate. Padda has since been arrested in connection with the case.
Prosecutors said the conspiracy charges carry a maximum penalty of five years in prison and a $250,000 fine. The insurance fraud counts carry a maximum sentence of 10-15 years in prison and a maximum fine of $250,000. Bank fraud counts carry a maximum penalty of 30 years in prison and a maximum fine of $1 million.
The US Attorney’s Office urges anyone who may be a victim in this case to contact the Office’s Victim Specialists by email.
