Feds to Extradite Allserve's Alleged Mastermind

In one of the biggest frauds to hit the leasing industry recently, $83 million, and to Bank of America, Bank of Lodi, Bank of the West, Central Valley Community Bank, CIT, Citi Capital, Commonwealth Capital, Continental Bank, Excel Bank, Fifth Third Leasing, First Financial, GATX Technology, Irwin Business Finance, Key Equipment Finance, MB Financial Bank North Fork Equipment Leasing, Overland Leasing Group, Pullman Bank & Trust, Republic Bank, Sovereign Bank, CIT Group, US Bancorp Technology Leasing.

These companies would have done a strip search if the deal were presented by a “leasing broker,” but when it comes from a manufacturer or dealer, it's a go from the very beginning with the promise of more to follow.

Allserve Systems Corp, New Brunswick, New Jersey filed bankruptcy last November ( ironically the same bankruptcy judge Rosemary Gambardella who is handling the NorVergence bankruptcy.)

Paradoxically this is another IT company, but this one was world wide. According to their web site, the Allserve network boasted of operations in New Jersey , Texas and four other states, as well as overseas. The web site states the company had a work force of 3,000, and in the company claimed revenues of $97 million, and spoke of plans to double its worldwide payroll to 6,000 by the start of this year.

http://prweb.com/releases/2004/1/prweb97656.htm

Recently an order to sell off all assets was made and another credit claims hearing to be held, but in reality, there is nothing left.

District of New Jersey

MLK Jr Federal Building
50 Walnut Street
Newark, NJ 07102

Case No.: 05-60401-RG

Chapter: 7

Judge: Rosemary Gambardella

In Re: Debtor(s) (name(s) used by the debtor(s) in the last 8 years, including married, maiden, trade, and address):

Allserve Systems Corp.
204 North Center Drive
North Brunswick, NJ 08902

Social Security No.:

Employer's Tax I.D. No.:

74-2644177

Charles A. Stanziale Jr., Trustee in the above captioned case, proposes a sell at public auction of certain property of the estate as described below.

If any creditor or other party in interest has an objection to the sale, the objection and a request for a hearing on such objection shall be in writing, served upon the person named below, the Trustee, and the Clerk of the United States Bankruptcy Court.

Such objection and request shall be filed with the Clerk and served upon the person named below on or before March 27, 2006.

In the event an objection is timely filed, a hearing will be held before the Honorable Rosemary Gambardella on:

DATE: 3/28/06

TIME: 10:00a.m.

COURTROOM: 3E

If no objection is filed with the Clerk and served upon the person named below on or before March 27, 2006, the auction sale will be held:

DATE: 3/30/06

TIME: 12:00noon

LOCATION: 204 North Center Dr., North Brunswick, NJ

Unless otherwise stated, the public sale will be free and clear of liens. Liens, if any be claimed, will attach to the proceeds of the public sale and the validity and extent of such liens will be determined at a later time.

All sales for cash or equivalent, payable at 25 percent at the time bid is made for personal property and 10 percent at the time bid is made for real estate with balance payable in full on approval of sale or delivery.

The trustee reserves the right to reject any and all bids or to withdraw any item of property from the sale at any time before the sale is completed.

DESCRIPTION OF PROPERTY TO BE SOLD

Various office furniture and equipment consisting of but not limited to: desks, file cabinets, chairs, tables, modular work area stations, storage cabinets,

The alleged Master Mind, Dinesh Dalmia, is reportedly in his homeland of India, being detained, as the Federal prosecutors want him extradited and convicted of all counts, up to 40 years or more. First they have to bring him to the United States.

Reportedly lawyers on both sides have been trying to track down the missing computer equipment and cash. Perhaps sent to India or to an offshore bank account, both US, Great Britain and India law enforcement are seeking answers.

"Dalmia himself has reportedly moved on to the BPO business and is known to be running major call centers at Gurgaon, Bangalore and Chennai!," reports Sucheta Dalal, in “financialexpress.com.”

Allegedly long linked to the Allserve network in the Indian press, Dinesh Dalmia insists he has nothing to do with the now bankrupt company.

"The Chennai correspondent of The Indian Express, Jaya Menon, checked out the addresses listed under the Allserve name," Chennai reported. "As in India , the American creditors allege there is no explanation for $35 million of cash that vanished from the Allserve books between July and October last year.”

US authorities says he fled the United Sates to avoid prosecution, sending cash to foreign banks before he left. Reportedly he had been running his scamming operation from a mansion in Fort Lee, N.J., since late 2003, sending money overseas since he started the scam.

Last January, Dalmia fled again - this time from the U.S. after a series of articles in The New York Post exposed him as the apparent head of a New Jersey-based white-collar crime syndicate.

He was apprehended by Indian authorities after returning to his native country early last month.

According to the New York Post, "The evasive tycoon is now being held under court orders for involuntary "scientific treatment" under a controversial Indian government program that includes 'brain mapping' and chemical injections to force criminal defendants to cooperate during interrogations.

According to press reports in India, the government wants Dalmia to divulge the whereabouts of more than $100 million that he allegedly looted from investors in that country.

Dalmia first came to the attention of federal authorities after a series of exposs in New York Post revealed him to have been living openly in Fort Lee, N.J., since late 2003, despite a worldwide Interpol arrest notice.

The Post coverage identified Dalmia as the alleged mastermind behind the looting of a North Brunswick, N.J., computer-services company called Allserve Systems Corp., which filed for bankruptcy in Newark last November.

The Post drew back the curtain on Dalmia's operations, from secret offshore bank accounts, to his alleged use of forged invoices for bogus companies at fake addresses - all to swindle blue-chip lenders such as IBM Credit Corp. out of millions in equipment finance contracts.

Federal prosecutors and the FBI, which launched a nationwide probe of Dalmia's activities, eventually identified some 20 different multi-million dollar contracts with swindled lenders from San Francisco to Boston.