Babu Ramaraj, 47, has been sentenced to seven years and six months in federal prison for orchestrating a fraudulent investment scheme that defrauded dozens of investors across several states, resulting in an estimated $15 million in losses. The U.S. Attorney’s Office for the Eastern District of Virginia announced the sentencing today.
Court records reveal that Ramaraj was the owner of DAB Inspection and Consulting Services, LLC (DAB), a small home contracting business primarily focused on patio and deck projects. He falsely claimed that DAB had secured lucrative contracts with several government entities, including the Federal Aviation Administration and the Virginia Department of Transportation (VDOT), for significant infrastructure projects.
Additionally, Ramaraj misled investors into believing that DAB was involved in a joint venture with the Washington, DC Water Clean Rivers Project, claiming contracts worth tens of millions of dollars. To lure investors, he insisted that he needed large upfront bond payments to secure these supposed contracts, stating that DAB’s young status made it difficult to obtain financing from banks.
To bolster his deceit, Ramaraj provided forged contract award letters, invoices, financial records, and various other falsified documents to potential investors. Between January 2020 and May 2024, he pitched high-interest investment opportunities, promising annual returns of 30% or more, particularly to individuals connected to his Loudoun County cricket league.
Instead of directing investor funds toward bond payments, Ramaraj transferred the money into his online brokerage accounts for securities trading, wired over $1 million to India, and funded a luxurious lifestyle that included purchasing several Teslas and acquiring real estate. His investment strategy ultimately resulted in millions of dollars in stock market losses. In total, Ramaraj collected nearly $40 million from investors while causing about $15 million in losses, as reported by the U.S. Attorney’s Office.
Ramaraj continued to deceive investors until his arrest on May 30, 2024. Since his arrest, he has been held without bond due to being deemed a flight risk, according to court documents.
