Vijay K. Taneja,Fairfax County mortgage broker and Bollywood film impresario was sentenced in federal court

Vijay K. Taneja, 48, was a prominent member of his community, helping people with mortgages while promoting the culture of his homeland by promoting shows with Bollywood stars. A stage producer from Mumbai wrote the court on his behalf, saying that Taneja had played a role "to enlighten the Asian communities overseas of their cultures and traditions." Fairfax County mortgage broker and Bollywood film impresario was sentenced in federal court in Alexandria yesterday to seven years in prison for defrauding banks of $33 million and scamming fellow immigrants in the local Indian community with phony home loans. Federal prosecutors revealed in November, however, that Taneja's persona was a sham, saying some of the money might have financed his high-flying cinematic endeavors. Local residents became unwitting pawns as Taneja obtained phony home loans in their names and damaged their credit, prosecutors said. In November, Taneja pleaded guilty in U.S. District Court to one count of conspiracy to commit money laundering in what prosecutors said was the largest mortgage fraud case in at least two decades. "I'm very sorry about my conduct and the embarrassment to my family," Taneja told U.S. District Judge Claude M. Hilton in low and halting tones at yesterday's sentencing. "I fully accept my responsibilities, and I am really very sorry." Assistant U.S. Attorney Stephen Learned called the sentence significant and fair for what was "a serious matter and a complicated matter." Taneja immigrated to the United States at age 10 when his diplomat father was posted here, according to court documents. He later became a naturalized citizen and worked at several banks before launching his own mortgage company in 1990.

His early clients were from the close-knit Indian community, many of whom were purchasing their first homes with his help. Taneja's reputation grew when he founded a company called Elite Entertainment that brought glamorous stars such as Shah Rukh Khan and Aishwarya Rai to the United States. At their peak, the galas attracted more than 10,000 people. Taneja began investing in Indian films as well.

In letters to the court, family and friends described a loving family man who helped at his temple. About 2001, however, Taneja began obtaining phony mortgages along with genuine ones, prosecutors said. Four banks lost millions, while ordinary citizens found their credit scores ruined with numerous fraudulent mortgages in their names, prosecutors said. David Lamb, an attorney for local residents victimized by Taneja, described in court documents the plight of one family that owned a mom-and-pop convenience store in Maryland and considered Taneja a friend. He ultimately arranged a risky mortgage that boosted the couple's monthly house payments from $4,100 to $7,500 a month, as well as shadow mortgages on the same property that left their credit in ruins. They are now in danger of losing their home, Lamb said. "It's taken a toll on them," Lame said. "They feel as though they trusted him . . . and they were taken advantage of. They're very hurt by it."
In 2003, flush with cash from an overheated real estate market, Taneja purchased property in a nondescript Fairfax neighborhood and began building a palatial home. Visitors would enter through a curving gate and ascend a steep circular drive to the eight-bedroom mansion outfitted with elaborate marble, an indoor swimming pool and a squash court. The swindle began to unravel in 2008 when the real estate market cooled, banks began lending less money and the FBI began making inquiries. "Except for the circumstances that bring us to court today, this is a man who has lived a good and worthy life . . . who never intended anybody harm," lawyer Robert P. Trout said yesterday. Taneja saw the multiple loans as "bridge financing" he would ultimately repay, Trout said, "until the balls could no longer be juggled and came tumbling down." Taneja's dream house ended up on the auction block in November as part of ongoing bankruptcy proceedings, sold for $3.9 million. The rest of the assets are tied up in bankruptcy court, but it is unlikely that the victims will recover much of the money, lawyers say. When Taneja filed for bankruptcy in June last year, he said he was $77 million in debt.