Mon Dec 2, 2019
Author: RV News Staff
A story in the South Bend Tribune revealed that the former owner and director of Interlogic Outsourcing Inc. (IOI), Najeeb Khan, allegedly used a “sophisticated scheme” that left dozens of clients and KeyBank out of millions. IOI was a national payroll processing firm with thousands of clients.
Key Bank alone suffered nearly $122 million in losses as a result of Khan’s elaborate check-kiting scheme. He is alleged to have used checks on Lake City Bank to initiate wire transfers he knew were bad.
Bankruptcy records detailed Khan’s possessions include more than 280 vehicles with a total value of $31 million, five homes valued at more than $6 million and an additional $59 million in assets through a series of companies he owns.
A bankruptcy case trustee reported that Khan recently contacted Sotheby’s and another broker regarding the sale of his vehicles. Court documents showed that some of the vehicles had been stored in a facility at the Elkhart Municipal Airport while others were stored in a barn across the street from his Edwardsburg home.
While Khan’s assets total approximately $98 million, his liabilities exceed his assets by nearly $28 million.
Dozens of IOI’s clients came to learn that money withdrawn from their accounts intended to be used for federal tax withholdings had not been sent to the Internal Revenue Service as intended.
Khan resigned from IOI and the company declared bankruptcy soon after these events came to light. IOI was sold last month to West Chester, Penn.-based PrimePay for the sum of $3.5 million.
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