Today, Babu Ramaraj, 47, an Aldie resident and owner of DAB Inspection and Consulting Services, LLC, received a seven-year and six-month federal prison sentence for a fraud scheme that caused investors losses totaling $15 million. Ramaraj was convicted on charges of wire fraud and unlawful monetary transactions, following his June indictment.
Ramaraj’s small contractor company, DAB, primarily handled modest patio and deck projects. However, he falsely claimed to investors that DAB had secured multimillion-dollar contracts with major agencies, including the Federal Aviation Administration and the Virginia Department of Transportation. He asserted that his company needed large bond payments to secure these contracts but couldn’t secure bank financing. Ramaraj provided falsified documents, including fake contract letters and financial records, to convince investors to lend funds.
From January 2020 to May 2024, Ramaraj promised investors returns exceeding 30% annually. He often targeted individuals within his Loudon County cricket league, enticing them to invest and recruit others. He continued making false claims even after admitting to tampering with financial records in October 2023 and was later arrested on May 30 as a flight risk.
According to the Department of Justice, Ramaraj misused investor funds, transferring them to brokerage accounts for stock trading, wiring over $1 million to India, and purchasing high-end vehicles and properties. His activities generated nearly $40 million, with a net loss of $15 million for investors.
In addition to his prison term, Ramaraj has been ordered to pay over $15 million in restitution.