Navdeep Arora, 51, an Indian-origin British national who was also an ex-partner at consulting firm McKinsey & Co, has been arrested in New York on allegations of fraud amounting to nearly $890,000. He was arrested by the FBI upon arrival in New York from London, on charges he engaged in a scheme to submit fraudulent invoices and expenses to the company and clients including State Farm.
Arora is charged with eight counts of wire fraud in an indictment filed in US District Court in Chicago. The indictment, also charges Matthew Sorensen, 44, a former internal consultant for State Farm Mutual Automobile Insurance Company, with five counts of wire fraud. Arora who joined KPMG in 2014 after leaving McKinsey, lived in London.
According to the federal charges, Arora oversaw various consulting services provided by McKinsey to State Farm. The indictment contends that Arora and Sorensen used two companies - "Gabriel Solutions" and "Andy's BCB" -to defraud their employers out of phony consulting fees.
The McKinsey spokesperson also informed that the firm discovered the scam in 2011 and notified the client and also cooperated with the authorities. The State Farm spokesman also informed that they had not employed Sorensen in over 3 years and had also not had a contractual relationship with McKinsey since 2012.