Sanjay Patel, a former Georgia-based real estate attorney, has admitted to fraudulently securing nearly $300,000 in Economic Injury Disaster Loans (EIDL) during the COVID-19 pandemic and laundering over $250,000 through his attorney escrow account from unrelated investor fraud schemes.
“This office will remain steadfast in coordinating with our federal law enforcement partners to identify and hold accountable those who defrauded the government’s COVID relief programs,” stated U.S. Attorney Ryan K. Buchanan. “It is especially aggravating that Patel, an attorney, not only used his professional standing to commit money laundering but also defrauded the American taxpayer out of hundreds of thousands of dollars.”
“The U.S. Postal Inspection Service will continue to ensure fraudsters who sought to enrich themselves with funds from pandemic-assistance programs are held accountable,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “This case serves as a reminder to individuals that engage in unlawful activity that law enforcement will spare no resource to bring you to justice for your criminal activity.”
“This guilty plea is a testament to our commitment to holding accountable those who engage in financial fraud,” remarked Edwin S. Bonano, Special Agent in Charge of FHFA-OIG’s Southeast Region.
“Even after four years, the FBI and our partners will continue to seek out anyone who abused their positions to defraud the government during the COVID-19 pandemic,” noted Keri Farley, Special Agent in Charge of FBI Atlanta. “This plea proves that no matter how much time has passed, if you commit financial crimes and steal from American taxpayers, you will be held accountable.”
According to U.S. Attorney Buchanan’s statement and court information: Between August 2020 and March 2021, Patel submitted four fraudulent EIDL loan applications seeking at least $421,000 from the Small Business Administration (SBA) under false pretenses about his business operations at Worden & Associates.
Patel misrepresented employee numbers, gross revenues, and even fabricated business existence on at least one application. Consequently, he secured two loans totaling approximately $300,000 based on these false claims.
After obtaining these funds meant for operational expenses such as payroll and utilities under EIDL guidelines, Patel diverted them for unauthorized uses including personal expenditures and gambling activities.
Additionally, Patel utilized his Interest on Lawyer Trust Account (IOLTA) for laundering proceeds from various investment frauds. For instance: on May 14, 2020; he received $350,000 meant for an energy project investment but wired $250,000 elsewhere immediately upon receipt; similarly occurring again with another $350K energy investment where he laundered over $132K via wire transfers despite not being directly involved in underlying fraudulent activities yet aware they stemmed from such schemes.
Patel’s sentencing is scheduled before U.S District Judge Steve C Jones on December 12th at 3 pm.
The case was investigated by multiple agencies including United States Postal Inspection Service Federal Bureau Investigation Federal Housing Finance Agency – Office Inspector General & Federal Deposit Insurance Corporation – Office Inspector General while Assistant US Attorney Alex R Sistla prosecutes it further emphasizing DOJ efforts against pandemic-related fraud through initiatives like COVID-19 Fraud Enforcement Task Force established May 17th last year among others providing resources combat prevent similar crimes nationally internationally alike via enhanced inter-agency coordination mechanisms identifying techniques uncover fraudulent actors sharing insights prior enforcement actions overall ensuring accountability across board throughout this period
Anyone having information regarding attempted COVID-19 related fraud can report via DOJ National Center Disaster Fraud hotline or web complaint form available online accordingly
For additional details contact USA Public Affairs Office Northern District Georgia
