Businessman Sentenced to Prison for $180 Million Bank Fraud

A businessman has been sentenced to over eight years in prison for orchestrating a $180 million check-kiting scheme. The scheme allowed him to live a luxurious lifestyle and build an impressive collection of classic cars. Najeeb Khan, a 70-year-old businessman from Edwardsburg, Michigan, admitted to being ‘blinded by greed’ as he carried out the fraud. In addition to his prison sentence, Khan has been ordered to pay $121 million in restitution to KeyBank, $27 million to clients, and $9.8 million in back taxes. Khan used the stolen funds to fund extravagant vacations, purchase mansions, planes, and yachts, and acquire a collection of vintage Ferraris, Fiats, and Jaguars. He has pleaded guilty to bank fraud and attempted tax evasion. Despite his guilty plea, Khan has helped his victims recover some funds by selling off his car collection at auction, which fetched approximately $40 million. The collapse of Khan’s scheme resulted in financial losses for around 1,700 clients, including small businesses, nonprofits, and charities. Some victims were forced to pay the IRS or their employees out of their own pockets, while others had to lay off employees or take out lines of credit.