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Hotel Owner Indicted for Bank Fraud
A federal grand jury in Greeneville, Tennessee, has indicted Jayesh Dahyabhai Patel, 48, of Knoxville, Tennessee, on five counts of bank fraud.
The indictment alleges that Patel, owner of the Knoxville hotel, engaged in a scheme to defraud First Community Bank of East Tennessee, Kingsport, in connection with a $5.8 million loan to his business, QIS Knoxville, LLC, to purchase and renovate the hotel.
According to the indictment, from January 2009 through August 2011, Patel provided false income tax returns for himself and his businesses to induce the bank to issue the loan. He then further schemed to defraud the bank by providing false invoices to induce the bank to disburse loan funds and by providing additional false tax returns to obtain an increase in the amount of the loan and to obtain a six-month interest-only payment period.
The indictment also alleges that Patel fraudulently induced the bank to make a second loan to finance the sale of a motel by providing false information as to the down payment on the purchase. If convicted, Patel faces a term of 30 years in prison, a $1,000,000 fine, and five years of supervised release as to each count.
The investigation into Patel’s activities was led by the Federal Bureau of Investigation. Assistant U.S. Attorney Neil Smith will represent the United States in this case.
Patel appeared in court on May 29, 2014, before U.S. Magistrate Judge Dennis Inman and pleaded not guilty. He was released pending trial, which has been set for July 23, 2014, in U.S. District Court, in Greeneville, Tennessee. Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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Key Facts
- State: Tennessee
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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