Nithyananda tries to squirm out of US fraud charges

Nithyananda tries to squirm out of US fraud charges

The “memorandum of points and authorities”, which are essentially rebuttals of the allegations made against Oklahoma-based Nithyananda Foundation by some non-residents Indians (NRIs) who in December last year brought criminal and civil charges of fraud, racketeering, breach of contract and unfair business practices, claims: “Swami is not a Foundation Board Member, is not a shareholder or member of the Foundation, is not an employee of the Foundation, and is not an agent of the Foundation.”

Two directors of the foundation were also slapped with the same charges.
A copy of the two-page document, which is in the possession of Deccan Herald, quotes the NRIs’ criminal case petition, filed in the superior court in San Bernadino county of California, saying: “Plaintiff (NRIs) alleges that Swami (not the Foundation) agreed in writing to transfer ownership of the property to plaintiff as a return of plaintiff’s $1.7 million investment” and that “despite the Swami’s agreement to transfer ownership of the property, the Foundation breached the contract and refuses to convey the property”.
The document claims that “Swami had no authority to authorise such transfer”.
It appears that the foundation lawyer’s response to the criminal case is more an attemp to delink Nithyananda from not just that particular entity but also at least a dozen other not-for-profit organisations that Nithyananda’s senior devotees ran across the United States.

The NRI’s criminal petition provides specific examples of wire transfer of huge sums of money, in the form of donations by devotees, from the foundation to a company known as Nithyananda Export and Import, which was “created, operated and is run by Nithyananda’s brother”.

In the light of the allegations made by the NRIs and the response to the charges, several former Nithyananda devotees are now wondering why an attempt is being made to show that he has no ties with the many money-spinning organisations that were established under his name.

One such entity was the Nithyananda Investment Fund I LP (limited partnership), a hedge fund, of which Nithyananda was the promoter.