Former insurance executive Jasbir Thandi has pleaded guilty in federal court for his involvement in fraud schemes that led to the downfall of two insurance companies, Global Hawk Risk Retention Group and Houston General Insurance Exchange. The 69-year-old from San Francisco admitted to two counts of conspiracy to commit insurance fraud.
Thandi founded Global Century Insurance Brokers, which managed business for Global Hawk. He conspired with others to create fraudulent financial records overstating the company’s capital and reserves. These false records were submitted to Vermont’s Department of Financial Regulation. When regulators uncovered the fraud in May 2020, Global Hawk was declared insolvent.
Thandi misappropriated over $1.5 million from Global Hawk for personal use, including buying a house and a luxury vehicle. He also used company funds meant as reserves for trading stocks.
In August 2016, Thandi secured an unauthorized $6.4 million line of credit for Global Hawk, later increased to $14 million. In March 2017, he applied for another unauthorized credit line worth $14.75 million.
Thandi also engaged in similar fraudulent activities with HGIE by submitting false financial documents to Texas’ Department of Insurance.
“Thandi and his co-conspirators’ scheme was far-reaching and had devastating financial consequences,” said United States Attorney Craig H. Missakian.
FBI Special Agent Sanjay Virmani emphasized the FBI’s commitment to holding accountable those who manipulate financial records: “By misrepresenting assets and misappropriating funds, Thandi not only misled regulators but also defrauded his company’s customers.”
Stephen M. Sherwood from USPIS highlighted their commitment against financial crime: “Criminals who would use the U.S. mail to commit fraud should know that postal inspectors… remain committed.”
Three co-defendants have already pleaded guilty to related charges: Sandeep Sahota, Jaspreet Padda, and Gunjan Aggarwal.
Currently out on bail, Thandi is scheduled for a status hearing on August 29 before Judge Jon S. Tigar. He faces up to five years in prison and a $250,000 fine per count of conspiracy.
Victims are being notified through the Department of Justice Victim Notification System (VNS). Those who believe they are victims can contact the Mega Victim Case Assistance Program at 1-844-527-5299 or via email.
Assistant U.S. Attorneys David Ward and Evan Mateer are prosecuting with assistance from Kevin Costello and Amala James following an investigation by the FBI and USPIS.
