Home Scam/Fraud NMC Health founder accuses banks, auditor and former chief of six-year fraud

NMC Health founder accuses banks, auditor and former chief of six-year fraud

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The founder of NMC Health has accused its fired chief executive, auditor EY and two banks of conspiring in a six-year fraud in an $8bn legal claim launched last week.

In a court document filed in New York, lawyers for BR Shetty claimed that the Indian-born tycoon had been defrauded through a “debt-fuelled Ponzi scheme” involving fictitious invoices, artificial inflation of the healthcare group’s revenues and the siphoning off of funds for personal gain.

The claim alleges that audit firm EY, alongside Bank of Baroda — one of India’s largest lenders — and Netherlands-based Credit Europe Bank, was central to a “co-ordinated and deliberate conspiracy” in which more than $5bn was stolen from companies in Shetty’s business empire.

NMC, the former FTSE 100 hospital operator, was placed into administration in April last year when more than $4bn of debts were discovered after being hidden from its balance…

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