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A one-time executive at KBS Realty Advisors pleaded guilty to embezzling more than $2.7M from the company over at least a decade.
Varun Aggarwal, who was most recently the director of the internal auditing department at KBS, pleaded guilty to one count of wire fraud, according to a release Monday from the U.S. Attorney’s Office for the Central District of California.
Aggarwal was arrested in November 2022. Federal prosecutors said at that time that Aggarwal took advantage of his knowledge of company policies, submitting invoices for work that was never performed and triggering payouts to companies controlled by his friends and family.
The scheme went on until January 2022, federal authorities say. At that time, KBS opened an investigation into his invoices and Aggarwal resigned.
According to his plea agreement, Aggarwal agreed to repay the funds he embezzled.
Newport Beach-based KBS is a commercial real estate investor that controls a number of REITs, including the one that sold the Union Bank Plaza in March.
Aggarwal is scheduled to be sentenced in January. He faces up to 20 years in federal prison.
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