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Mahendra Patel, Kickback Scheme, Georgia 2007

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Defendant Pleads Guilty in $780,000 Kickback Scheme

Atlanta, GA – In a shocking turn of events, Mahendra Patel, a former consultant, has pleaded guilty to conspiring with former Atlanta Public Schools (APS) Chief Information Officer (CIO) Jerome Oberlton to receive kickbacks in exchange for Oberlton using his influence at APS to award a $780,000 computer project to the firm.

According to the investigation, Patel and Oberlton conspired to influence the Request for Proposal (RFP) process and caused the winning bidder to be selected in exchange for kickbacks paid to both. The bribes were disguised as sales commissions for non-existent consulting work that Patel supposedly performed for the shell companies.

In reality, Patel acted as an intermediary, helping to negotiate the kickbacks between Oberlton and the Detroit-based technology company and then signed fake sales consultant agreements to hide his role. The Detroit-based technology company ultimately paid approximately $60,000 in bribes to Oberlton and Patel over almost six months and, in return, the company received almost $800,000 in APS project work.

U.S. Attorney Sally Quillian Yates stated that Patel subverted the fairness of the contracting process for his own benefit and undermined the trust taxpayers place in APS to provide high-quality educational services.

Mark F. Giuliano, Special Agent in Charge of the FBI Atlanta Field Office, stated that with today’s guilty plea, Mr. Patel acknowledges his criminal wrongdoing for which he will now be held accountable.

Patel, 45, of Kennesaw, Ga., pleaded guilty to conspiring with Oberlton to accept bribes, which carries a maximum term of imprisonment of five years and a fine of $250,000. A sentencing date for Patel has not yet been set by the Court.

These cases are being investigated by the Federal Bureau of Investigation and Internal Revenue Service.

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