Connecting over 25 millions NRIs worldwide
NRIbanks.net
Most trusted Name in the NRI media
NRI PEOPLE- OUR NETWORK
 
Rajesh C. Patel

 

NRI hotelier and former banker defrauds-an-investor faces up to twenty years in prison

  • RC Patel and his brother, Mukesh “Mike” Patel had been the main shareholders of Haven Trust Bank in Duluth, Georgia, which was opened in 1999 and shut down in 2008 by Georgia state
  • The failure of the Bank was estimated to cost the Federal Deposit Insurance fund $248 million
  • The FDIC seeks recovery from these directors and officers (mostly NRIs for losses of approximately $40 million that the Bank suffered in connection with imprudent commercial real estate (“CRE”) loans, and improper loans to insiders…. Unbelievable!

———————-

CEO Of Diplomat Companies Pleads Guilty To Defrauding Investor

Department of Justice/U.S. Attorney’s Office/Middle District of Tennessee

Monday, July 13, 2015

R.C. Patel aka Rajesh C. Patel, 55, of Duluth, Georgia, pleaded guilty today in U.S. District Court in Nashville, Tenn., to two counts of wire fraud, for defrauding an investor, announced David Rivera, United States Attorney for the Middle District of Tennessee.

During a hearing before U.S. District Court Senior Judge William J. Haynes, Jr., Patel pleaded guilty to two counts of wire fraud arising from an investment deal involving a mortgage on a hotel property in Atlanta, Georgia. Patel was a hotel owner and developer and was also a substantial shareholder in a community bank in Georgia that was involved in bidding on mortgages being auctioned by the FDIC. Patel admitted accepting $500,000 from a Brentwood, Tennessee investor in connection with an anticipated $3.75M bid on a hotel mortgage. The bid submitted by Patel was not the winning bid and Patel instead, used these funds to pay a debt arising from an unrelated transaction. Patel also admitted making misrepresentations to the investor regarding the outcome of the mortgage auction and concealing the fact that he used the investor’s funds for unrelated purposes.

Patel has already made full restitution to the victim of this fraud.
Patel will be sentenced on October 5, 2015. He faces up to twenty years in prison on each count, in addition to potential fines and forfeiture of any money or property derived from the fraud.

The case was investigated by the Federal Bureau of Investigation. The United States is represented by Assistant U.S. Attorney Bill Abely.

————————————————–
Indian-origin hotelier and former banker admits to defrauding investor of $500,000

New York, July 16, 2015:

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 Tennesse

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…– Indo-Asian News Service
————————————————–


Haven Trust Bank, in Duluth, Ga., was shut by the F.D.I.C.

Feds Take Over Haven Trust Bank (75th Largest SBA Lender) BB&T Assumes All Deposits
December 12, 2008

Haven Trust Bank, Duluth, Georgia, was closed today by the Georgia Department of Banking and Finance, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Branch Banking & Trust (BB&T), Winston-Salem, NC, to assume all of Haven Trust’s deposits, including those that exceeded the insurance limit.

The four branches of Haven Trust will reopen on Monday as branches of BB&T. All the depositors of Haven Trust will automatically become depositors of BB&T. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their existing banking relationship to retain their deposit insurance coverage. Customers of the failed bank should continue to use their existing branches until they receive further information from BB&T.

Over the weekend, depositors of Haven Trust can access all their money by writing checks or using ATMs or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of December 8, 2008, Haven Trust had total assets of $572 million and total deposits of $515 million. BB&T agreed to assume all of the deposits for $112,000. In addition to assuming all of the failed bank’s deposits, BB&T will purchase approximately $55 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $200 million. The BB&T’s acquisition of all deposits was the “least costly” resolution for the FDIC’s Deposit Insurance Fund compared to alternatives. Haven Trust is the 24th bank to fail in the nation this year, and the fifth in Georgia. The last bank to be closed in the state was First Georgia Community Bank, Jackson, GA, on December 5, 2008.

 

 

 

 

 

Haven Trust Bank, in Duluth, Ga., was shut by the F.D.I.C

Rajesh C Patel and his brother, Mukesh “Mike” Patel had been the main shareholders of Haven Trust Bank in Duluth, Georgia, which was opened in 1999 and shut down in 2008 by Georgia state

READ:

  1. Haven Trust Bank in Court....... READ

  2. NRI Plaintiffs.... READ