Edwardsburg man pleads guilty in federal court to bank fraud, tax evasion

Published: Jan. 21, 2023 at 10:14 PM EST
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CLEVELAND (WNDU) - An Edwardsburg man accused of running a check kiting scheme for years that caused a financial loss of nearly $150 million has pleaded guilty.

According to Cleveland.com, 69-year-old Najeeb Khan pleaded guilty in federal court in Cleveland on Jan. 12 to bank fraud and attempted tax evasion.

Khan is the former owner of the Elkhart-based payroll processing firm Interlogic Outsourcing, Inc. (IOI).

His collection of automobiles, aircraft, and vacation homes that he acquired with his ill-gotten gains has been liquidated. The sale of his classic car collection alone netted more than $44 million.

Bank fraud carries a maximum prison sentence of 30 years, while attempted tax fraud carries a maximum sentence of five years. The government calculates Khan owes more than $7.1 million in back taxes.

His plea agreement means attorneys can argue his sentence, but it will start somewhere between 14 and 18 years. Khan’s sentencing date has not yet been set.

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