Two brothers stole $3 million from Tennessee after creating a fake company to receive a state economic and community development grant, according to an investigation released by the comptroller Tuesday.
Karim and Rahim Sadruddin created a company called Textile Corporation of America, which secured the multimillion-dollar grant to create 995 manufacturing jobs in Pikeville. But in reality, the brothers used the money for political donations, personal expenses and to fund another scheme for an unrelated federal contract.
The brothers used $1.2 million of the state grant to buy ship tarps under a FEMA disaster relief contract, according to the comptroller. The FEMA contract stipulated that the tarps could be supplied only from approved sources. The Sadruddins obtained the tarps from an unapproved source and then submitted invoices to FEMA that falsely represented they had bought them from an approved source.
In their Tennessee scam,…