$400 Million Fraud By Frisco Businessmen

$400 Million Fraud By Frisco BusinessmenTwo Frisco businessmen were hit with a civil judgment exceeding $400 million over a proposed luxury development near Georgetown. A Williamson County jury found Gopala Krishnan and Sakthivel Gounder liable for fraud and breach of contract involving "The District," a planned 400-acre community advertised with canals, restaurants, stores, parks and boat access. The project was never built, and the site remained largely undeveloped farmland.The dispute involved a $21 million agreement with Energy Commissioning Inc. for roads, utilities and other essential improvements. Krishnan and Gounder paid only a small amount toward the work and unsuccessfully sought $5 billion in European financing. The judgment included $300 million intended to punish the misconduct. The men also co-founded Nanban Ventures, which the SEC accused of raising $130 million primarily from Indian-American investors in North Texas; available court records showed no criminal charges against either man.