Brothers sentenced to 50 months in prison in Pikeville textile mill fraud case

The twin brothers who lied to local, state and federal governments to secure grant money and federal contracts as part of a never-realized textile mill in Pikeville were each sentenced Friday morning, May 7, to 50 months imprisonment and ordered to pay $7 million in restitution by Chief District Judge Travis McDonough for the United States District Court for the Eastern District of Tennessee. They were additionally sentenced to five years of supervised release following their prison sentence.

“Today’s sentencing announcement is significant and highlights the FBI’s collaboration with our partner agencies as we hold these defendants accountable for knowingly and wittingly creating a fraudulent and deceptive scheme against the citizens of Tennessee,” said Special Agent in Charge, Joe Carrico of the FBI field Office. “We remain committed to aggressively pursue those whose intent is to victimize the very ones they proclaim they want to help.”

In late 2019, Karim and Rahim Sadruddin, 35, pled guilty to major fraud in connection with the failed Textile Corporation of America venture in Pikeville, originally announced in 2017, with each pleading guilty to two counts of wire fraud and one count of money laundering.

In a Court document filed last month, the Sadruddins asked the judge to consider a lesser sentence than outlined by federal sentencing guidelines. The sentencing imposed on them ended up being less than federal sentencing guidelines, which called for between 70-87 months in jail. 

For more, see the May 13 issue of The Bledsonian-Banner.

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