Live
- Chanchalguda Jail Officials Say They Haven't Received Bail Papers Yet, Allu Arjun May Stay in Jail Tonight
- BJP leaders present evidence of illegal voters in Delhi, urge EC for swift action
- Exams will not be cancelled: BPSC chairman
- Nagesh Trophy: Karnataka, T.N win in Group A; Bihar, Rajasthan triumph in Group B
- YS Jagan condemns the arrest of Allu Arjun
- Economic and digital corridors to maritime connectivity, India and Italy building vision for future, says Italian Ambassador
- SMAT 2024: Patidar's heroics guide Madhya Pradesh to final after 13 years
- CCPA issues notices to 17 entities for violating direct selling rules
- Mamata expresses satisfaction over speedy conviction in minor girl rape-murder case
- Transparent Survey Process for Indiramma Housing Scheme Directed by District Collector
NRI banker pleads guilty to defrauding an investor of $5lakh
NRI Banker Pleads Guilty To Defrauding An Investor Of $5lakh.. A hotelier and former banker of Indian origin has admitted in a federal court to defrauding an investor of $500,000 and now faces a prison sentence, according to a federal prosecutor in Tennessee.
New York: A hotelier and former banker of Indian origin has admitted in a federal court to defrauding an investor of $500,000 and now faces a prison sentence, according to a federal prosecutor in Tennessee.
Rajesh C. Patel, 55, of Duluth, Georgia, pleaded guilty Monday before federal Senior Judge William J. Haynes, Jr., in Nashville, Tennessee, to two charges of wire fraud in defrauding the investor, according to the prosecutor, David Rivera.
Patel had received the money from the Tennessee-based investor for a $3.75 million auction bid for a hotel mortgage, but when he lost the bid he diverted the money to pay a debt, the the Federal Bureau of Investigation (FBI) said Tuesday. He also misrepresented the result of the auction to the investor.
He has since, however, repaid the money to the investor.
The maximum penalty Patel can receive when he is sentenced Oct. 15 is 20 years in prison for each of the offenses, in addition to fines and property forfeiture. In practice, though, it is unusual for someone to receive the maximum prison sentences to run serially.
Wire fraud charges involve the use of telephones or digital communications to carry out the crime.
Patel and his brother, Mukesh "Mike" Patel had been been the main shareholders of Haven Trust Bank in Duluth, Georgia, which was shut down in 2008 by Georgia state authorities.
Subsequently he and 14 others who were directors or officials of the bank were sued by the federal agency which guarantees deposits made by bank customers. The agency had accused them gross negligence and failure to carry out their duties properly.
In 2014 all the 15 reached a settlement in which they agreed to pay the agency $2.45 million.
