More than Seventy Victims Lost Over $31 million in Investment Scam

Babu Ramaraj committed investment fraud to scam over 70 victims out of more than $31 million.

From 2019 through 2024, Ramaraj promised his victims unrealistic returns of 40 to 60 percent. He falsely claimed that his company, DAB Inspection and Consulting Services LLC, had large, lucrative contracts with government partners and would use client funds for finance surety and performance bonds. To increase his persuasiveness, he also falsified contracts and financial documents.

In fact, Ramaraj used all of the money he received to purchase luxury cars, jewelry, and property, as well as to participate in options trading and to make payments to earlier investors.

Scott A. Thompson, Associate Director of Enforcement in the SEC’s Philadelphia Regional Office, said, "Ramaraj promised his investors unrealistic returns from government contracts he never had and then used their money to fund his own lifestyle and to make Ponzi-like payments to maintain the deception."

The U.S. District Court charged Ramaraj with wire fraud and unlawful monetary transactions, violating the antifraud provisions of the federal securities laws.