DoJ Says Embezzlement And False Identity Scheme Cost Tesla $10 Million

Tesla

NOV 9 2018 BY STEVEN LOVEDAY 25

This week, the U.S. Department of Justice has officially charged a former Tesla employee that seems to have embezzled some $10 million.

Apparently, Salil Parulekar used wire fraud to steal money from Tesla. He was previously the automaker’s Global Supply Management chair. According to the report by Electrek, Salil was charged with nine counts of wire fraud, as well as identity theft.

The indictment indicates that Salil worked closely with suppliers for Tesla and took advantage of his executive position to redirect supply payments in a plan that could only cost the automaker money and help him in the interim (however, it’s not clear how Salil may have benefited in the situation). According to the DoJ via Electrek:

Parulekar learned in January 2017 that Tesla had terminated its supplier relationship with Schwabische Huttenwerke Automotive GmbH (“SHW”). At the time of the termination, SHW had only provided a limited number of sample products, specifically, motor pumps, to Tesla. Parulekar allegedly knew the termination meant that Tesla was withholding future payments to SHW and that Parulekar was not authorized to contravene this decision. Notwithstanding these facts, Parulekar redirected a series of payments intended for another supplier, Hota Industrial Manufacturing Co., Ltd. (“Hota”), and caused them to be paid to SHW.

Salil went so far as to falsify his identity to work payments in his favor to a company that no longer serviced Tesla, instead of another supplier that was expecting payment for services/goods provided. We don’t know exactly how that impacted supply or production or how it benefited Salil, but what we do know is that it may have cost Tesla some $9.3 million. Thankfully, Salil was no longer employed by the Silicon Valley electric automaker as of last December.

According to the publication, if Salil is proven guilty, he could face up to 20 years in prison and fines of up to $250,000 for each wire fraud violation. Still, we don’t know if there’s a way for Tesla to ever receive its misdirected monies. We also have no indication whether or not Salil benefited financially from the fraud and/or if he’ll also be responsible for helping to reclaim the lost revenue or its impact to productivity.

Source: Electrek

Categories: Tesla

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25 Comments on "DoJ Says Embezzlement And False Identity Scheme Cost Tesla $10 Million"

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Vexar

Well, now we know about the DoJ investigation!

Philip

How disappointing for the Tesla bashers. They SO much wanted Elon to be shown to be dishonest. 😊

Some Guy
I believe that the scheme is as follows: – Be the one in charge of authorizing wire transfers at company A – Change account number of legitimate company B to receive a transfer with the one of the other company C that has no longer business to receive anything, but is well known internally so charges will not raise flags (or be also the one that checks the raised flags as well) – With the next transfer intended to company B, the money will be sent to the wrong company C, but likely show up in the system as legit, if system operates by name of receiving company B Then there are two options: a) company C (or an accountant there) is in on it b) company C is not in on it – In case of b), contact company C accounting department and apologize to them that a mistake has been made. – Provide account number so they can re-wire the illgotten gains minus a transaction fee of their choice If said account number is provided by the well known legit contact person in charge at company A, by official mail-adress or even company letter, accountants from company C… Read more »
TM3x2 Chris

Thanks for this handy “how to embezzle” write up. Next time I need $10M, I’ll follow your guidelines:)

Vexar

Oh great. @TM3x2 Chris, please, don’t fall into a life of crime. It is hollow, unrewarding, and very dark. You will live in a perpetual state of paranoia, and one day, you’ll get caught.

Alonso Perez

Or become president.

Vexar

Let’s hope nobody on InsideEVs is into crime, because this is detailed advice.

Some Guy
I was just detailing the likely scenario. People in positions that involve authority about dealing with that kind of money know this already, because it is the easiest scheme. I might add, that most of those people are smart enough not to do this, because every wiretransfer always leaves evidence, and results in prisontime even if the money is gone. Embezzlers always get caught in the end, because they usually get greedy because it seemingly so easy and so they never stop. The scheme fails when company B simply asks for the outstanding debt to be paid, triggering an internal audit at company A at some point (which is likely the reason why the fraudster left in December already). Besides, even if they not get caught by their own company, the IRS surely will ask some questions regarding sudden wealth or high spendings of an individual that do not match income tax statements, or the tax authorities of the country company C has to answer to wants to know why they are laundering money. Furthermore, all wiretransfers are monitored by government agencies, and high amounts of money being sent to individuals or small companies across state lines raise alerts, in… Read more »
Mister G

IMO this was supply chain sabotage by a fossil fuel mafia agent.

Stephen

From a corporate governance perspective, this problem can arise because of the lack of enforcement for segregation of duties (SoD). Tesla is a young company and has probably not yet implemented SoD or SoD analysis.

Nix

And yet they caught him…..

Sounds like you aren’t the only one to underestimate Tesla.

Pushmi-Pullyu

“– Provide account number so they can re-wire the illgotten gains minus a transaction fee of their choice”

No doubt that will avoid detection if it’s just one refund, but if this is repeated multiple times over a period of months — as is alleged here — then you’d think someone would start to ask questions. Of course, maybe someone did ask questions, and maybe that’s how the embezzling was discovered.

antrik

Actually, the source article says that he could face 20 years on *each* count of wire fraud…

amt

Free Room & Board for the Rest of his Natural life….

Pushmi-Pullyu

In the graybar hotel…

antrik

I guess this incident might have played a role in motivating Elon’s paranoid-sounding remarks earlier this year…

Will

He might send the money to Swiss bank account. That money is never coming back

Some Guy

Swiss banks are more than happy to return illegal money to the rightful owner. Especially when tax fraud is comitted in the US, because they want to be able to do business in US and not loose their license to operate.
This goes to a point that when opening a savings account in Europe, one has to sign a document that one does not live or work in the US.

Pushmi-Pullyu

“Swiss banks are more than happy to return illegal money to the rightful owner.”

…but, apparently, the Swiss government is not so enlightened.

https://www.swissinfo.ch/eng/1mdb-scandal_parliament-rejects-call-for-switzerland-to-return-confiscated-funds-to-malaysia/43975032

Kosh

Obviously, another reason why Tesla is going under…… …….. ……..

Big Solar

Wild Fires?

Mister G

Are the wild fires burning near Fremont?

Big Solar

i think the closest one is 200 miles away, i may be wrong

Mister G

SABOTAGE I KNEW IT..fossil fuel mafia is not going away without a fight CONNECT THE DOTS ON CLEAN AIR WAKE UP EARTHLINGS co2.earth

Kan

H needs to take a permanent vacation on the beaches of Bellandur Lake.