Chattanooga Times Free Press

Troubled textile timeline

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• April 2017: Karim and Rahim Sadruddin meet with officials from state and federal entities, promising to invest $27 million in a new textile plant in Pikeville, Tennessee.

• July 2017: The Tennessee Department of Economic and Community Developmen­t approves a $3 million grant to the Sadruddins’ Textile Corp. of America for the purchase and renovation of a building for the plant.

• September-October 2017: Hurricanes Irma and Maria strike Puerto Rico.

• September 2017: The Sadruddins’ Master Group USA submits a bid to FEMA to provide tarps for hurricane relief, which they amend in November to meet the requiremen­t that the tarps not be manufactur­ed in China.

• October 2017: Karim Sadruddin emails the Southeast Tennessee Developmen­t District a fraudulent wire transfer record and invoice reflecting work done on the building in Pikeville.

• November 2017: FEMA awards the Sadruddins a $30.7 million contract to provide tarps for hurricane relief.

• November 2017-January 2018: The Sadruddins deliver 58,000 tarps and collect $3.7 million before FEMA issues a stop-work order.

• May 2018: Rahim Sadruddin emails TVA and falsely reports that the textile plant is operating.

• July 2018: TVA sends the Sadruddins a $230,000 performanc­e grant for the Pikeville textile plant.

• November 2019: The Sadruddins each plead guilty in federal court in Chattanoog­a to two counts of wire fraud and one count of money laundering. Sentencing is set for March 2020. They return to Atlanta on a $30,000 bond.

• February-December 2020: Sentencing is reset four times while the brothers sell assets to make partial restitutio­n. They have raised about $1 million by December 2020. Sentencing is set for March 2021.

• February 2021: Sentencing is reset for May 2021.

• May 2021: Karim and Rahim Sadruddin are sentenced to 50 months in prison by a federal judge on two counts of wire fraud and one count of money laundering.

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