Former auditor at OC real estate agency admits to embezzling nearly $3M.

Former Executive Pleads Guilty ‍to Embezzling $2.7 Million

SANTA ANA, Calif.—In a shocking case of corporate fraud, a former executive at an ⁤Orange County commercial ⁢real ​estate agency has pleaded guilty to embezzling over $2.7 million from his employer. The scheme involved submitting bogus invoices for services that were ⁤never performed by companies controlled by his family and friends.

Varun⁣ Aggarwal, 41, of Irvine, admitted to one count of wire fraud, according to the ​U.S. ‌Attorney’s Office. U.S. District Judge Cormac J. Carney⁢ has set a sentencing hearing for January 22,⁤ where Mr. Aggarwal could face up to 20 years in prison.

Elaborate Scheme

According to his‍ plea agreement, Varun Aggarwal worked in the‍ internal‍ auditing department of Newport Beach-based KBS Realty Advisors ‍from 2008⁣ to January 2022. He ​rose to the⁢ position of director within ⁤the ⁣department. During this time, Aggarwal used his position to carry out his embezzlement scheme.

As a member of the company’s internal auditing‍ group, Aggarwal was well-versed in KBS’s payment⁣ policies and ⁢procedures. He exploited this knowledge by having⁣ his ⁢friends and family become​ approved vendors for KBS, allowing them ⁢to submit fraudulent invoices​ for consulting services ⁣that were ⁢never provided.

Aggarwal‌ then redirected the payments from these invoices, funnelling the money into ‌his own ⁢bank accounts‍ without the⁢ knowledge of the vendors. In total, he fraudulently obtained approximately $2.72 million from⁣ KBS.

After the ‌company initiated an investigation into the‍ suspicious invoices, ‍Aggarwal​ resigned from his ​position in January 2022.