Aldi resident Babu Ramaraj, 47, was sentenced today to seven years and six months in federal prison for defrauding dozens of investors across several states, including Virginia, Maryland, North Carolina, New Jersey, and Missouri, resulting in $15 million in losses, the U.S. Attorney’s Office, Eastern District of Virginia announced.
According to court records, Ramaraj owned DAB Inspection and Consulting Services, LLC (DAB), a small home contractor focused on patio and deck projects.
Ramaraj falsely claimed that DAB had secured lucrative contracts with the Federal Aviation Administration, the Virginia Department of Transportation (VDOT), and other agencies for major infrastructure projects.
He also told investors that DAB was involved in a joint venture with the Washington, DC Water Clean Rivers Project, with contracts purportedly worth tens of millions of dollars, court documents revealed.
Ramaraj convinced investors that he needed large upfront bond payments to secure these contracts but was unable to obtain financing from banks due to DAB’s youth as a company.