Bhagirath Patel, 53, and his wife, Shital Patel, 49, both of Birmingham, Alabama, were charged in a nine-count indictment unsealed today for their alleged roles in a scheme to defraud the Department of the Treasury’s Emergency Capital Investment Fund (ECIF) and the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) of over $1.5 million in taxpayer-funded COVID-19 relief.
The indictment alleges that the Patels, who own and operate a convenience store in Birmingham, applied for and received multiple ECIF and PPP loans under false pretenses, claiming that the funds would be used to support their business during the COVID-19 pandemic. However, the indictment alleges that the Patels used the majority of the funds for personal expenses, including purchasing real estate and luxury vehicles.
The indictment charges the Patels with one count of conspiracy to commit wire fraud, four counts of wire fraud, two counts of making false statements to a financial institution, and two counts of money laundering. If convicted, Bhagirath Patel faces up to 20 years in prison and a fine of up to $250,000 on each count, while Shital Patel faces up to 10 years in prison and a fine of up to $250,000 on each count.
The U.S. Department of the Treasury’s Office of Inspector General and the Federal Bureau of Investigation investigated the case.
Bhagirath Patel was arrested and appeared in court on February 14, 2022. Shital Patel was also arrested and appeared in court on February 14, 2022.
The case is being prosecuted by Assistant U.S. Attorney, [Name], of the Northern District of Alabama.
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Key Facts
- State: Alabama
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source â†â€â€ÂÂ
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