Najeen Khan
Najeen Khan
Najeeb Khan had the luxurious trappings of a wildly successful businessman — boats, planes, a helicopter, dozens of classic cars — and the standing to serve on several local corporate boards.

He turned the company he founded, Elkhart-based Interlogic Outsourcing, into a national payroll processing force, with 6,000 clients across the country. He also donated money to local philanthropies.

But questions are now swirling about Khan’s business and actions that led to a lawsuit accusing his company of a multi-million-dollar fraud.

The lawsuit alleges IOI, and Khan specifically, ordered wire transfers through KeyBank of $122 million without having the necessary money. The wire transfers were made possible by checks written from a Lake City Bank account to KeyBank, which were later returned because the account was overdrawn.

KeyBank told investors earlier this week it could face a loss of $90 million after tax as a result of the wire transfers, and the Cleveland-based bank said it’s “working with the appropriate law enforcement authorities in connection with this matter.”

In its lawsuit, filed in federal court in Cleveland, KeyBank called Khan and IOI’s actions “willful breaches and fraudulent conduct.”

The suit and the questions it touched off have left many IOI clients with concerns about their payrolls and even scrambling to switch to other providers.

Former and current IOI employees contacted by The Tribune were reluctant to comment, as were members of boards he served on and other people who know him.

On July 9, Khan resigned his position on the board of directors for 1st Source Bank. Khan cited “personal reasons” for his departure, according to a 1st Source spokeswoman.

Then, a few days after the lawsuit was filed, references to Khan and IOI’s treasurer, Robert O’Brien, were removed from the company’s website. Another page, which detailed the company’s history and founding by Khan, was also removed.

Late last week at one of Khan’s homes, on the north bank of Eagle Lake near Edwardsburg, the blinds were drawn and the lights were off. He hadn’t been home for a few days, neighbors said. Next door, another home owned by Khan stood empty.
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