A federal grand jury in Washington, D.C., has indicted Deepak Jain, a 49-year-old Indian man from Maryland, for major fraud against the United States and making false statements to the U.S. Securities and Exchange Commission (SEC).
Deepak Jain, an Indian-origin CEO of an information technology company (referred to as Company A), is accused of misleading the SEC about the reliability and security of his company’s data center.
Between 2012 and 2018, the SEC paid Company A approximately $10.7 million for data center services.
To secure the SEC contract, Deepak Jain allegedly created a company called Uptime Council to falsely certify that Company A’s data center had achieved a Tier IV rating, the highest level of reliability.
In reality, the data center did not meet these standards, leading to several security and operational issues while the SEC was using the services.
The indictment states that Deepak Jain’s actions were part of a long-term scheme to defraud the SEC for personal gain, compromising the integrity and security of government data.
If convicted, Deepak Jain faces up to 10 years in prison for each count of major fraud and up to five years for making false statements.
The case is under investigation by the SEC Office of Inspector General and is being prosecuted by the Criminal Division’s Fraud Section.
