Two men are facing federal charges in a brazen kickback scheme that bled millions from a national nonprofit health organization. Nimesh Patel, 45, of Woodcliff Lake, New Jersey, and Dilip Vadlamudi, 45, of Carmel, Indiana, were arrested this morning and charged in Manhattan federal court with conspiracy to commit honest services wire fraud, conspiracy to violate the Travel Act, and conspiracy to commit wire fraud. The indictment alleges Patel used his position as a senior IT director to steer lucrative contracts to Vadlamudi’s Indiana-based IT staffing firm, all while pocketing $274,000 in illicit payments.
Patel, once trusted with overseeing critical technology operations at the nonprofit—headquartered in Westchester, New York—abused his authority to rig the hiring process. Between October 2012 and September 2014, he pushed the nonprofit to hire dozens of temporary IT workers from Vadlamudi’s company, VADLAMUDI Company-1. Each placement generated hefty fees, funneling millions of dollars to the contractor. In return, Vadlamudi funneled kickbacks through a shell corporation controlled by Patel, including $80,000 used for a down payment on Patel’s home and over $100,000 transferred directly into his personal accounts.
The two defendants didn’t just hide their trail—they documented it. Prosecutors say Patel and Vadlamudi exchanged detailed spreadsheets listing each worker placed and the corresponding kickback amount owed. These emails, preserved as evidence, lay bare the cold, transactional nature of their fraud. The scheme unraveled in fall 2014 when the nonprofit launched an internal probe into corruption in its IT department. When questioned, Patel lied under oath, denying any financial ties to Vadlamudi—a move that now adds obstruction to his list of alleged crimes.
U.S. Attorney Preet Bharara didn’t mince words: “As alleged, the defendants conspired to defraud a national nonprofit organization. Patel allegedly abused his position at the nonprofit to funnel millions in fees to Vadlamudi’s company in exchange for hundreds of thousands in kickbacks.” The case, led by the U.S. Postal Inspection Service, underscores how even nonprofit institutions—meant to serve the public good—are vulnerable to insider betrayal.
Philip R. Bartlett, Inspector-in-Charge of the USPIS New York Office, called the scheme a calculated betrayal. “These individuals took advantage of their business relationship by devising a scheme to ‘fatten their wallets,’ while having no regard for the victimized nonprofit organization.” Postal inspectors, often overlooked in high-profile financial cases, played a pivotal role in tracking the money trail across state lines—a jurisdictional footprint that triggered federal involvement.
Patel appeared before U.S. Magistrate Judge Katharine H. Parker in Manhattan, while Vadlamudi faced a magistrate in Indianapolis. Both remain in custody as the case proceeds. If convicted, they face up to 20 years per count. The nonprofit, though unnamed in court papers, is now left to reckon with the cost of betrayal from within—one that drained hundreds of thousands meant for patient care and system integrity.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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