The former CEO, CFO and executive director of Constellation Healthcare Technologies were charged May 16 with allegedly scheming to defraud investors out of more than $300 million.
Here are five things to know.
1. The three allegedly devised fake customers, subsidiaries and acquisitions and altered bank statements to inflate the company's value and lead investors to value the company at more than $300 million before it was taken private.
2. Parmjit "Paul" Parmar, Sotirios "Sam" Zaharis and Ravi Chivukula were charged with one count of conspiracy to commit securities fraud and one count of securities fraud.
Mr. Parmar, the former CEO, was arrested May 16 and appeared in federal court. Mr. Chivukula and Mr. Zaharis remain at large, according to the Department of Justice.
3. They are charged with scheming to defraud investors beginning in May 2015. The alleged scheme was exposed around September 2017, when the executives resigned from their positions or were fired.
4. A private investment firm put up about $82 million in equity to fund the transaction to take the company private. Other financial institutions provided roughly an additional $130 million in debt.
5. Constellation, a healthcare billing company, and several of its affiliated entities filed for bankruptcy on March 16, largely attributing the financial collapse to the alleged fraud scheme.
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