Annamalai, who bought and later shuttered a downtown Dayton tower, was convicted of the felony counts on Aug. 25, 2014, and originally was scheduled to be sentenced in November.
Federal prosecutors outlined how Annamalai charged his followers’ credit cards for spiritual services on multiple occasions. That income, the FBI said, helped fund a luxurious lifestyle. He owned or controlled numerous properties, vehicles and foreign bank accounts in India.
“Annamalai perverted the sacred institution of religion by using it as a vehicle for greed and personal profit,” said Acting U.S. Attorney John A. Horn. “He convinced his victims that they had a problem in need of spiritual guidance, and then took advantage of their vulnerabilities for personal financial gain.”
Annamalai lost his Atlanta temple, the Hindu Temple of Georgia, to bankruptcy in 2009. He came to Dayton the next year and bought the historic Third National Bank and Trust Building on North Main Street for $525,000. He closed the building in 2012 and was living in Baytown, Texas when he was indicted by federal authorities.
The downtown building currently is in receivership. According to the Montgomery County treasurer’s office, back property taxes on the building total $257,193.
Dayton attorney Jonathan Hung is the receiver of the building, now called Paru Tower, and has received a commercial appraisal for the property.
“The property is up for sale and any interested buyers can contact me and I’ll be happy to discuss where we are in the bidding process,” Hung said. “Those people who have come forward to me with claims, I will do my best to protect those claims.”
Hung has received two bids that he deemed to be substantially below the value of the property.
In addition to owing Montgomery County for back taxes, Annamalai owes $1.9 million to Lloyd Whitaker, who was appointed as a bankruptcy trustee in the case against Annamalai. Dayton Power & Light is owed $18,537.
Annamalai, 49, also was convicted on bank fraud and obstruction charges. He also was convicted of conspiring with his spouse and others to conceal the arrest of co-defendant Kumar Chinnathambi, who pleaded guilty to one count of bankruptcy fraud.
In court documents, Kumar’s attorney wrote that his client was recruited to come to Atlanta by Annamalai.
“He was twisted and pulled, confused and manipulated, by Mr. Annamalai, a religious con artist that convinced a group of lower caste Indian Priests to come to America and do his bidding.”
Kumar cooperated with federal authorities, which helped them gain a guilty plea from Parvathi Sivanadiyan, Annamalai’s wife.
Annamalai filed at least 20 defamation lawsuits while in Atlanta and his name appeared on numerous civil suits in Dayton as well. Many of the lawsuits he filed were against those he said owed him money in exchange for religious services.
That penchant for filing lawsuits led prosecutors to file a supplemental sentencing memorandum that led U.S. District Judge Timothy C. Batten Sr. to:
- Order Annamalai to not engage in any spiritual services for compensation, directly or indirectly through mediaries;
- Order Annamalai to not file frivolous, abusive, or malicious lawsuits against former creditors and others; and
- Recommend to the Bureau of Prisons that Annamalai be housed in a Communications Management Housing Unit, where his phone calls and electronic communications will be monitored.
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