Narasimha Bhogavalli booked in financial fraud case

U.S. Attorney John Parker of the Northern District of Texas, has announced that Federal Bureau of Investigation special agents arrested Narasimha Bhogavalli, a businessman in Irving, Texas, on a federal complaint charging him with engaging in monetary transactions in property derived from specified unlawful activity in connection with an Internal Revenue Service (IRS) impersonation scam that defrauded victims of money that Bhogavalli then transferred between accounts and wired to India. 

On 26th of this month, Bhogavalli made his initial appearance before U.S. Magistrate Judge Paul D. Stickney, who ordered him detained pending a detention hearing yesterday at 2:00 p.m., before U.S. Magistrate Judge Renée Harris Toliver. Individuals claiming to be IRS agents contacted victims from throughout the U.S., the complaint says. Victims were advised there were outstanding warrants for their arrest and they would be sent to jail unless they deposited money orders, and sometimes cash, into bank accounts controlled by Bhogavalli and other accounts used by co-conspirators in the scam.

Its two Bank of America accounts, Bhogavalli used in the scam, among which one is in the name of Tekdynamics, Inc. and another is Touchstone Commodities, Inc. Adding to it, the investigation also revealed that, other additional accounts controlled by Bhogavalli, including a Citibank account held in the name of Touchstone Commodities.

Around 242 deposits of cash and money orders, totaling approximately $1,661,247, including at least 2,250 separate money orders totaling $1,493,848 were made in one of the Bank of America accounts, between November 5, 2014, and February 2, 2015. At least 60 money orders, totaling $37,957 were deposited in the other Bank of America account, between January 16, 2015, and January 30, 2015. At least 128 money orders, totaling $96,716 were deposited into the Citibank account between  November 4, 2014, and February 5, 2015.

According to the complaint, a financial analysis of those accounts shows that immediately following the deposits made by the victims of the money soliciting scam, the proceeds were wire transferred to other accounts Bhogavalli controlled, where he either spent the funds or wired the funds to accounts in other countries, such as India. Several wire transfers were made in amounts above $10,000.

Bhogavalli according to the records, was listed as the Director of Touchstone Commodities, located at 1425 Greenway Drive, Suite 650, in Irving. In account opening documents, Bhogavalli characterized Touchstone Commodities as an “import-export” business.  On its website where Bhogavalli is listed as Chairman, Touchstone Commodities is “experienced in the global sourcing and supply of many valuable commodities,” including iron ore, steel and wood chips. 

Records are showing Bhogavalli as President of Tekdynamics. As the website says, Tekdynamics is a provider of “technology, outsourcing and consulting needs” with established infrastructure in the U.S. and India. Tekdynamics address is listed as 1425 Greenway Drive, Suite 650, in Irving.

A written statement of the essential facts of the offense charged, and that is made under oath before a magistrate judge, is a federal criminal complaint. A defendant until proven guilty, is entitled to the presumption of innocence. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment.  The maximum statutory penalty for the charged offense is 10 years in federal prison and a $250,000 fine.

FBI and the U.S. Treasury Inspector General for Tax Administration (TIGTA) is conducting the investigation. Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution.