Paresh Patel Pleads Guilty to Obstruction of Justice in New York

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Douglas Shoemaker, the Special Agent in Charge of the New York Regional Investigations Office of the United States Department of Transportation Office of Inspector General, and Carolyn Pokorny, Metropolitan Transportation Authority Inspector General for the State of New York, announced that Paresh Patel, a former MTA manager, pled guilty today before U.S. Magistrate Judge Ona T. Wang to obstructing a federal investigation into bid rigging and fraud in connection with contracts awarded by the MTA for Superstorm Sandy-related subway repairs.

Patel, who set up a private company that participated in a bid for a project that he would oversee at the MTA, took numerous steps upon learning that his conduct was being investigated, including deleting an email account, asking others to destroy evidence, and encouraging others to lie to authorities to obstruct the investigation.

Patel previously surrendered to federal authorities on February 18, 2020.

"In the wake of Superstorm Sandy, Paresh Patel set up a company so that he and his family could profit from the work that was being done to repair our subways," said U.S. Attorney Geoffrey S. Berman. "When Patel learned he was under investigation, he destroyed evidence and asked others to lie to federal and local investigators. Efforts to obstruct investigations into corruption at the MTA undermine the public’s faith in the nation’s largest public transportation system and threaten the ability of our Government to ensure that justice is done."

"The devastation caused by Hurricane Sandy is only exacerbated by the unscrupulous actions of Mr. Patel, who was entrusted with aiding in the restoration of the New York region’s transit infrastructure," said DOT-OIG Special Agent in Charge Douglas Shoemaker. "Working with our law enforcement and prosecutorial partners, we will continue to protect the taxpayers’ investment in our nation’s infrastructure and pursue those who participate in fraud schemes that undermine DOT-funded programs and projects, and the public trust."

"It is simply unacceptable for an MTA employee to obstruct any investigation – let alone a criminal investigation," said MTA Inspector General Carolyn Pokorny. "We are proud that our initial probe has resulted in derailing this scheme to defraud riders, taxpayers, and other stakeholders of our great transportation system, and thankful to our law enforcement partners who worked with us to leave no doubt that obstructing a federal investigation is a crime."

According to the allegations made in the Information to which the defendant pled guilty, as well as the defendant’s admissions in court:

In order to manage necessary subway rehabilitation work following Superstorm Sandy in 2013, the MTA awarded construction management contracts for managers to oversee post-Sandy subway projects. To prevent self-dealing and the appearance of corruption, the MTA maintains rules relating to conflicts of interest. The rules provide that MTA employees are barred from participating in the selection, award, or administration of a contract if the employee, his or her family member, or an organization that employs the employee or one of the employee’s family members has a financial interest in any of the companies that propose or bid on, or are awarded, such a contract.

Patel was a program manager at the MTA and was responsible for awarding contracts and exercising oversight of Superstorm Sandy-related subway repairs. In June 2014, Patel and another MTA employee set up an engineering consulting firm named Satkirti Consulting Engineering LLC (“Satkirti”). Because MTA rules prohibited them from having an interest in such a company, Patel and the other employee registered Satkirti in the names of their children, and then transferred the ownership to a friend of Patel who played no substantive role in the management of Satkirti. In February 2015, Satkirti submitted a bid on a project that Patel would oversee at the MTA, in which Satkirti proposed to provide engineering consulting services to the MTA in connection with the project. Patel used his position at the MTA to advance Satkirti’s interests and secure the contract for Satkirti.

Patel’s company, Satkirti, ultimately received a contract from the MTA to provide engineering consulting services in connection with the project, and Patel personally received payments from Satkirti in connection with the contract. Patel’s conduct in setting up Satkirti and securing the contract for Satkirti violated MTA rules and undermined the integrity of the MTA’s contracting process.

When the MTA Inspector General’s office began investigating Patel’s conduct, Patel took numerous steps to obstruct the investigation, including deleting an email account, asking others to destroy evidence, and encouraging others to lie to authorities. Patel’s actions were designed to conceal his misconduct and prevent the MTA Inspector General’s office from uncovering the truth about his conduct.

MORE FEDERAL CRIME NEWS

Public Corruption

Merrick Garland, Police Week Honors, Washington D.C. 2022

May 17, 2023

Public Corruption

Dreyfus Deception: A Web of Deceit Unfolds in 1899 Court Martial

Aug 30, 1899

Public Corruption

Michael Thomas Smith, Wire Fraud, Missouri 2023

Apr 20, 2017

Public Corruption

Los Angeles County Vote Centers, ADA Violations, California 2024

Oct 23, 2020