Businessman Sentenced to Eight Years in Prison for $180 Million Check-Kiting Scheme
Najeeb Khan, a 70-year-old businessman from Edwardsburg, Michigan, has been handed an eight-year prison sentence for orchestrating a massive check-kiting scheme worth $180 million. Khan, who lived a luxurious lifestyle and amassed an impressive collection of classic cars, was sentenced after admitting his guilt before a federal judge on Thursday. He confessed to being “blinded by greed” as he carried out the scheme, which involved purchasing over 250 cars, as well as airplanes, boats, and a helicopter. In addition to his prison term, Khan has been ordered to pay $121 million in restitution to KeyBank, $27 million to clients, and $9.8 million in back taxes.
According to authorities, Khan executed the fraud between 2011 and 2019 while expanding his payroll processing business in Elkhart, Indiana. He manipulated three different banks by depositing numerous checks and wire transfers with insufficient funds, artificially inflating the balances in his accounts. During this time, he managed to divert approximately $73 million for personal use.
Using the ill-gotten funds, Khan financed an extravagant lifestyle that included luxury vacations, mansions in Arizona and Michigan, and properties in Florida and Montana. He also acquired a fleet of planes and yachts. Notably, his classic car collection boasted pristine vintage Ferraris, Fiats, and Jaguars.
Khan pleaded guilty to charges of bank fraud and attempted tax evasion. His defense attorneys noted that he had helped some of his victims recover their losses, primarily by selling off his car collection, which fetched around $40 million at auction.
Prosecutors revealed that Khan’s scheme had dire consequences for approximately 1,700 of his clients, who lost money when his company withdrew funds meant for payroll taxes. These clients included small and mid-sized businesses, nonprofits, and charities, such as the Boy Scouts of America and four Catholic dioceses. Many victims were forced to cover their tax obligations or pay their employees out of their own pockets, while others had to resort to laying off staff or taking out lines of credit.
