Troubled textile timeline
• 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.