Indian-American Businessman Sentenced to 12.5 Years in Prison for $4 Million Mega Fraud
By: Raja Zahid Akhtar Khanzada
Plano, Texas – The long-running scheme of Indian-American businessman Sameer Parveen Sethi has finally come to an end. Sethi, who defrauded investors of more than $4 million, has been sentenced to twelve and a half years in federal prison. This sensational verdict was delivered on August 28, 2025, in the Eastern District of Texas, where Judge Sean D. Jordan, after an extensive and lengthy trial, found Sethi guilty on seven counts of wire fraud and one count of money laundering.
Investigations revealed that for several years, Sethi had been running a massive fraudulent investment scheme, deceiving hundreds of innocent investors under the guise of major oil and gas projects. He created fake companies and falsely portrayed them as being linked with some of the world’s leading corporations such as ConocoPhillips, ExxonMobil, Continental Resources, and Hess Corporation. By displaying the logos of these well-known companies on his website, Sethi was able to gain the trust of potential investors. He promised that 70 percent of the funds raised would be spent on drilling and completing 20 oil wells in North Dakota.
However, the shocking reality presented in court showed that less than one million dollars of the collected funds were actually invested in the promised projects. The vast majority of the money was instead spent by Sethi, his family members, and close associates on lavish personal expenses and unauthorized business costs.
It is important to note that this scandal is not new. Back in 2015, the U.S. Securities and Exchange Commission (SEC) had already taken emergency civil action against Sethi and his company, Sethi Petroleum. At that time, the SEC halted the company’s investment offerings and froze Sethi’s assets to prevent further misuse of funds. During those proceedings, the court was informed that Sethi had been luring investors by presenting false promises of profits while secretly siphoning off their money for personal gain.
Acting U.S. Attorney J.R. Combs stated that the sentence handed down by Judge Jordan was the result of years of investigation by IRS-Criminal Investigation and a lengthy trial, reflecting the seriousness of Sethi’s crimes. He added that the U.S. Attorney’s Office would continue to work closely with the IRS and the FBI to ensure that cases of investor fraud are thoroughly investigated and prosecuted, delivering justice to the public and to the innocent victims whose trust was violated.
The case was investigated by the Internal Revenue Service-Criminal Investigation, the Texas State Securities Board, and the FBI.
Sethi has been sentenced to 151 months, approximately twelve and a half years, in federal prison and ordered to pay a substantial fine. Meanwhile, the defrauded investors remain hopeful that they will one day recover their lost funds.
Experts have called this one of the largest fraud scandals in the history of the U.S. investment market, serving as a stark warning to investors not to invest in any scheme without careful research and due diligence. Following the court’s verdict, Sethi’s name will now go down in history as a grim example of investment fraud in the United States.
