Battle Creek Hotel Owner Mike Patel Indicted for Wage Fraud

Mehul Chandubhai Patel, a/k/a “Mike Patel,” 31, of Battle Creek, Michigan, is facing federal charges after allegedly lying to the U.S. Department of Labor about paying employees the legal minimum wage. The indictment, returned December 14, 2016, accuses Patel of falsely claiming he had compensated workers as required under federal law—while secretly forcing them to return their wages after payday. Each count carries a maximum sentence of five years in prison, plus fines and supervised release.

Patel appeared in federal district court in Grand Rapids, where he was arraigned and released on bond under strict conditions: surrendering his passport and submitting to electronic monitoring. The charges stem from a federal investigation into labor violations at a hotel operation controlled by Patel. Investigators uncovered a scheme in which employees were paid on paper—but then coerced into handing cash back to Patel or his associates, effectively slashing their pay below the federally mandated minimum.

U.S. Attorney Patrick A. Miles did not mince words. “There are good reasons why we have a minimum wage law,” Miles said. “Workers have the right to a fair wage for a job well done. If an employer tries to cheat his employees out of paying the bare minimum wage permitted in this country, the Department of Labor will come calling to make him follow this law. If that same employer is so brazen that he then lies to the Department of Labor about repaying his employees, federal agents will come calling with an arrest warrant.”

The case is being prosecuted by Timothy VerHey, Assistant U.S. Attorney, and was jointly investigated by the U.S. Department of Labor’s Office of Inspector General, Homeland Security Investigations (HSI), and the Battle Creek Police Department. Authorities say Patel’s actions not only violated wage laws but also obstructed a federal investigation—making the charges more severe.

“An important mission of the Office of Inspector General is to investigate allegations relating to obstruction of U.S. Labor Department functions and investigations,” said James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the OIG. “We will continue to work with our law enforcement and intra-Agency partners to investigate these types of allegations.”

Steve Francis, Acting Special Agent in Charge for HSI Detroit, added: “HSI will continue to use its broad jurisdiction to hold employers accountable. One of our primary investigative priorities is to ensure a level playing field for all businesses through our worksite enforcement strategy.” The indictment underscores a growing federal crackdown on off-the-books wage schemes in the hospitality and service industries. Patel remains presumed innocent until proven guilty in court.