Former CEO of pharmaceutical company charged in $100M fraud scheme

The former chairman and CEO of New York City-based Inyx was charged with eight counts of wire fraud in connection with a scheme that caused Westernbank Puerto Rico to collapse after incurring $100 million in losses, according to the Department of Justice.

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According to an indictment filed Aug. 4 in the Southern District of Florida, Jack Kachkar and others allegedly persuaded executives at Westernbank Puerto Rico to enter into a series of agreements to provide loans and lines of credit to Inyx and its subsidiaries from 2005 to 2007.

The indictment alleges that Mr. Kachkar and his co-conspirators submitted false and fraudulent customer invoices as collateral for loans provided by the bank and made false and fraudulent claims about Inyx’s ability to repay the loans. Mr. Kachkar also allegedly misappropriated and embezzled nearly $25 million in fraud proceeds for his own use and benefit. He allegedly used the money to pay for multiple high-end real estate properties in Miami, luxury vehicles and a private jet.

Mr. Kachkar was arrested Monday.

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