A federal indictment is accusing a former Minneapolis CEO in the health care industry of orchestrating financial schemes that netted her millions of dollars that she sheltered in overseas bank accounts and shell companies under her control.
Former Minneapolis health care industry CEO accused of running schemes that netted her millions
She wired more than $5 million to bank accounts in Morocco and shell companies under her control, according to a federal grand jury indictment.
November 16, 2022 at 4:42PM
Khemwhattie Singh, 52, was indicted by a grand jury last week on seven counts of wire fraud in connection with her operation of Global Medical Services, which is now out of business.
Singh appeared in court Tuesday and is free on a personal recognizance bond of $25,000. Court records do not list an attorney for her. Several messages were left Wednesday with Singh seeking her response to the allegations. A tentative trial date of Jan. 23 has been set.
According to its website, Global Medical Services was based in downtown Minneapolis and had offices in London and the Middle East. It said its business mission was to provide "accessible healthcare solutions and services across the globe."
According to court documents:
Between June and October 2018, Singh and others entered into factoring contracts with MD Capital Solutions, a Florida-based investment company, to purchase the accounts receivable of Global Medical Services and Minnesota International Medicine for more than $2.6 million.
Factoring is a form of short-term financing in which a business sells its accounts receivable to a third party at a discount.
Singh defrauded MD Capital Solutions by failing to pay over the receivables as they were collected and falsely represented to MD Capital Solutions that no funds had been received. Instead, Singh pocketed the money, wiring more than $5 million overseas to bank accounts in Morocco and shell companies under her control.
In September 2019, MD Capital Solutions sued Global Medical Services in state court in Minnesota and Florida. By the end of 2019, Global Medical Services shut down and no longer had any employees on its payroll.
Despite the company being shuttered, Singh submitted in April 2020 an application for Paycheck Protection Program (PPP) COVID relief funds in the name of Global Medical Services seeking more than $383,000. Singh stated on the application that the average monthly payroll was $153,363 and that the company had about 40 employees.
This allowed her to receive roughly $296,800 in PPP funds. She transferred $116,600 to her personal bank account and used the money for a home loan, credit card payments and other personal expenses.
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