Condo sales ties to alleged $100 million Bay Area real estate fraud might not be enough to repay victims

"In 2020, federal investigators claimed Acharya defrauded hundreds of investors out of more than $100 million they had invested in projects by Acharya and his company. Acharya and Silicon Sage would frequently shift money from investors through numerous bank accounts at lightning-quick speeds to keep cash flows from drying up, according to papers filed by a court-appointed receiver. Silicon Sage and Acharya maintained 77 different bank accounts and engaged in at least 130,000 banking transactions over a period of eight years,"

"The transactions that the receiver's forensic accountant analyzed consistently demonstrated that money put into a specific entity would be transferred through multiple accounts, usually within a matter of minutes, before ending up in the account of an entity that needed to make payments that day, the receiver stated in a U.S. District Court filing on Dec. 3. Acharya and Silicon Sage made no attempt to ensure that the money it received from investors for a specific property was used for that property."

Profits from condo sales in San Jose and Fremont tied to Sanjeev Acharya and Silicon Sage Builders are expected to fall well short of amounts needed for investor restitution. Federal investigators say Acharya defrauded hundreds of investors of more than $100 million invested in his projects. Acharya and Silicon Sage reportedly shifted investor funds rapidly through numerous bank accounts to maintain cash flow, operating 77 bank accounts and at least 130,000 transactions over eight years. A court-appointed receiver and forensic accountant reviewed seven entities and found funds moved through multiple accounts within minutes. Money designated for specific properties was not kept for those properties.

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