MINNEAPOLIS (WJON News) -- Two Minnesota executives have pleaded guilty to fraud charges for their roles in a multi-million dollar scheme.

The U.S. Attorney's Office says 53-year-old Khemwattie Singh pleaded guilty to one count of wire fraud and one count of willful failure to account for and pay over payroll taxes, while 55-year-old Neeraj Chepuri pleaded guilty to one count of wire fraud.

Court records show Singh worked as the CEO and Neeraj worked as the CMO of Global Medical Services, a healthcare solutions company based in Minnesota. According to the documents, the two entered into factoring contracts between June and October 2018 to sell their accounts receivable to Florida-based MD Capital Solutions for over $2.6 million.

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Records show after the sales, Singh and Chepuri did not pay the receivables they collected on the accounts to MD Capital Solutions and claimed they had not received any funds. According to court records, Singh and Chepuri instead pocketed the money and wired more than $5 million into accounts overseas. The documents also show Singh failed to file quarterly tax returns and pay over withheld funds and employer contributions to FICA.

Singh and Chepuri are both expected to be sentenced in May.

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