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Oakland Tribune

Landlord's indictment includes conspiracy
February 02, 2000

By Cecily Burt
STAFF WRITER

OAKLAND -- A federal grand jury Tuesday added conspiracy charges to the list of federal immigration crimes faced by a prominent Berkeley landlord accused of bringing young women into this country illegally to work in his restaurants and satisfy his sexual needs.

The eight-count federal indictment handed down by the grand jury charges Lakireddy Bali Reddy, 62, with conspiracy to bring Indian citizens into this country illegally, transporting minors for illegal sexual activity, and importing and harboring aliens for immoral purposes, among other charges.

If found guilty on all counts and sentenced to the maximum prison term for each count, Reddy could spend the next 70 years in jail, said Debbie Husnik, assistant to Assistant U.S. Attorney Matt Jacobs.

Reddy was arrested Jan. 14 and is free on $10 million bail -- most of which was pledged in property by his relatives and friends.

Reddy's son, Vijay Kumar Lakireddy, 30, was charged in the indictment with three federal counts of visa fraud, aiding and encouraging Indian citizens to enter this country illegally, and the new charge of conspiracy.

If convicted on all three counts and given the maximum possible sentence, Lakireddy could spend 20 years behind bars.

Lakireddy was arrested Jan. 25 and released on $500,000 bail. Both men are scheduled Monday for arraignment and plea.

Ted Cassman, Reddy's attorney, said the indictment was expected, and didn't bring any surprises.

"There's absolutely nothing new there," he said. "Mr. Reddy will appear in court Monday and plead not guilty."

Still, Cassman said he wasn't ruling out any additional charges against his client, especially when "(influential people) dangle rewards in front of people," he said.

"Sen. Dianne Feinstein wants to grant immunity to anyone who testifies against Mr. Reddy, and the police (imply) there are more victims. Of course I disagree with that completely."

Reddy came to the United States in 1969, became a U.S. citizen, and graduated from UC Berkeley with a degree in chemical engineering.

He started his vast real estate empire and commercial holdings with a small restaurant in Emeryville. He now owns Pasand restaurants in Berkeley and Santa Clara, and his real estate holdings in the East Bay are valued at between $50 million and $70 million.

But local police say they discovered another side to Reddy after Sitha Vemireddy (actually Chanti Jyotsna Devi Prattipati), 17, died Nov. 24 of carbon monoxide poisoning in an apartment building Reddy owns on Bancroft Way.

Local and federal officials say Reddy obtained a skilled worker visa through his son's company, Active Tech Solutions, for an acquaintance from his home town in India.

The man, Venkateswara Vemireddy, was to work as a programmer analyst at Active Tech for a $42,972 annual salary.

Instead, the federal indictment alleges, Reddy paid the man to pose as the father of Prattipati and her 15-year-sister so they could move to the United States. Once here, Vemireddy worked at Pasand Restaurant.

Berkeley Police Lt. Bob Maloney said Reddy also faces state charges involving sex with a minor.

The Berkeley case is expected to be turned over the Alameda County District Attorney next week, Maloney said.

He would not say if other alleged victims of Reddy have stepped forward, but he said investigators believe there are more.