Businessman Accused of Bankruptcy Fraud

LOS ANGELES â€”  An international businessman who allegedly sold videotape manufacturing equipment and magnetic tape for nearly $16 million to China while concealing the deal from his creditors and a U.S. Bankruptcy Court judge was indicted Thursday by a federal grand jury.

Named in the indictment, which alleges 14 counts of bankruptcy fraud and three related charges, was Amarjit Singh Anand, 40, a native of India who owned the defunct Intermagnetics America in Gardena, a maker of magnetic tape used in audio and videocassettes. Anand also is being sought on fraud charges in two other countries.

Also named on one count of bankruptcy fraud and two related charges was Mehdi Karbassi, 54, an associate of Anand.

According to the indictment, Anand sought approval in 1985 from U.S. Bankruptcy Judge James R. Dooley to sell the equipment to 3-D Media, a company formed by Karbassi but which authorities allege was controlled by Anand. The sale was to raise money to pay claims from Intermagnetics creditors, who say they are owed more than $40 million.

In the indictment, returned in U.S. District Court in Los Angeles, federal authorities contend the sale to 3-D Media was a sham. While Anand was seeking approval to sell the equipment to 3-D, authorities allege, he secretly arranged to sell the equipment for $15.8 million to China International Trust Investment Corp., a Chinese agency that resembles an investment bank.

Kevin Brehm, a deputy federal public defender who represents Anand, said he had not read the indictment and declined to comment on the charges. He said Anand plans to plead not guilty at an arraignment on July 24.

Arrested May 23

Anand also was charged with contempt, conspiracy and fraud. He has been in jail in the Metropolitan Detention Center in Los Angeles since May 23, when he was arrested for failing to attend a court-ordered deposition. Karbassi is a fugitive, said Maureen A. Tighe, special assistant U.S. attorney.

Anand is wanted in France for bankruptcy fraud and embezzlement and in the United Arab Emirates for bank fraud. French officials are attempting to extradite him. The United Arab Emirates has no extradition treaty with the United States.