Madhavi Vuppalapati and Prithvi Information Solutions Involved in Million Fraud

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Plot: Madhavi Vuppalapati’s company Prithvi Information Solutions and all its affiliates had created fictitious, counterfeit customers to get an advance payment of $17 million from Kyko Global Inc.

Plot: Madhavi Vuppalapati’s company Prithvi Information Solutions and all its affiliates had created fictitious, counterfeit customers to get an advance payment of $17 million from Kyko Global Inc.

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  • 1. MADHAVI VUPPALAPATI AND PRITHVI INFORMATION SOLUTIONS INVOLVED IN $18 MILLION FRAUD
  • 2. Involvement in Business Fraud On June 17, 2013, Kyko Global GMBH and Kyko Global Inc, filed a Fraud or Truth-In-Lending suit against Prithvi Information Solutions in the Seattle office of Washington Western District Court. According to the plaintiffs, Madhavi Vuppalapati’s company, Prithvi Information Solutions, and its affiliates had created fictitious, counterfeit customers to get an advance payment of $17 million from Kyko Global Inc.
  • 3. The court arrived at a judgment in September 2013 and ordered Prithvi Information Solutions to pay $17,568,854 plus $796,776 as additional damages for the fraud. Keeping in view Madhavi Vuppalapati’s involvement in the business fraud, her assets and property have been seized by the Sheriff King County.
  • 4. The Fraud In November 2011, Kyko Global, an Ontario-based company, entered into an agreement with Prithvi Information Solutions for certain factoring services. According to the agreement, Prithvi Information Solution had to identify certain of its customer account receivable for IT services and authorize direct payment on those customer accounts receivable to be made to Kyko in exchange for a portion of the amount outstanding from its customers to be paid immediately by Kyko. Prithvi Information Solutions offered to Kyko account receivables for the following major customers, Dick’s Sporting Goods, Enterprise Product Partners, Financial Oxygen, Huawei, L3 Communications.
  • 5. However, the reality was that none of these companies had any current business relationship with Prithvi Information Solutions. When Kyko tried to acknowledge that these clients will make payments directly to Kyko, they got verifications, but in reality, it was the associates of Prithvi Information Solutions that had posed as clients and created and executed the verifications. When Kyko requested Madhavi Vuppalapati that they be put in touch directly with the representatives of the five clients, she turned down the request saying that it will be detrimental to their relationships with these clients.
  • 6. The Vicious Circle of Deceit Over a period of around two years, Madhavi Vuppalapati and her associates continuously deceived the unsuspecting Kyko, in the process, coming up with one excuse or the other to keep them in the dark. Finally, while attempting to collect outstanding dues, Kyko came to know, through its own internal investigation that Prithvi Information Solutions had created fictitious customers to deceive Kyko and extract more monies from it
  • 7. In order to get its money back, Kyko filed a lawsuit on 17th of June against Prithvi Information Solutions at the United States District Court, Western District of Washington at Seattle. On August 8, 2013, Kyko moved the court for issuance of judgment in amount against defendants pursuant to confession of judgment and the motion was granted by the court.
  • 8. Jury Enters a Judgment On September 6, 2013, the jury entered a judgment against Prithvi Information Solutions in the amount of $17,568,854 plus prejudgment interest accruing at the rate agreed to between the parties at 2.45% per month in the total amount of $796,776. On September 2013, Kyko filed a Writ of Garnishment against Prithvi Information Solutions. Kyko claimed damages to the tune of $18,431,765,90 inclusive of balance of judgment, prejudgment interest, and interest of judgment from 9th June, 2013 to September 23rd, 2013.
  • 9. Seize & Auction of Madhavi Vuppalapati’s Personal Property On February 12, 2014, a court notice was sent to Madhavi Vuppalapati. According to the notice, the Sheriff was directed to auction and sell her personal assets including 2006 Lexus RX4005D car and her jewelry and miscellaneous household items. The auction wad held on 20th March 2014 at Bellevue, WA