US charges Indian-origin tech entrepreneur in $45mn investment fraud

An Indian-origin entrepreneur with ambitious goals of developing virtual-world technologies has been arrested and charged by federal prosecutors in an alleged $45 million investment fraud scheme that targeted more than 10,000 people.

US Assistant Attorney General Kenneth Polite announced on Wednesday the filing of charges in a federal court in Nebraska against Neil Chandran, who owned several companies under the banner of ViRSE.

The Justice Department said that Chandran was arrested in Los Angeles.

The Department added that Chandran, 50, falsely promised investors an extremely high rate of returns by claiming that a consortium of wealthy persons, including two billionaires, was about to acquire one or more of his companies.