Telugu Origin CEO Jailed For Fraud in California

The CEO of several IT companies in California, Kishore Kethineni, an Indian-American of Telugu origin, has been sentenced to two years in prison for bank fraud and not paying over $2 million in employment taxes.

Kishore Kethineni, along with his brothers, fraudulently secured over $3.1 million in loans under the Paycheck Protection Program (PPP), a pandemic relief effort.

He owned four companies involved in the scheme, while his brothers owned three. They submitted around 12 nearly identical PPP loan applications, receiving approval for nine loans. Instead of using the funds for their intended purpose, Kethineni redirected a substantial amount for personal use.

Kethineni also failed to account for and pay employment taxes withheld from employees, accumulating a liability of over $2 million. Kethineni’s failure to file tax forms led to employee audits by the IRS.

He has pleaded guilty to the charges and has been sentenced to prison, supervised release, restitution, and a fine. The court also ordered a money forfeiture.