At a hearing Patel pleaded guilty to two counts of wire fraud arising from an investment deal involving a mortgage on a hotel property in Atlanta Georgia.
A hotel owner and developer, Patel was also a substantial shareholder in a community bank in Georgia that was involved in bidding on mortgages auctioned by the Federal Deposit Insurance Corporation. Documents show he admitted accepting $500,000 from a Brentwood, Tennessee investor in connection with an anticipated $3.75 million bid on a hotel mortgage. Patel however instead used the funds to pay a debt arising from an unrelated transaction.
He also admitted to making misrepresentations to the investor and concealing the fact that he used the funds for unrelated purposes.
Patel has made full restitution to the victim of the fraud. His sentencing is scheduled for October 5.