Atlanta Attorney Pleads Guilty to Fraud and Money Laundering
ATLANTA—In an unfolding tale of fraud and deceit, Sanjay Patel, once an esteemed attorney who ran a real estate law firm in Georgia, has admitted to bilking the federal government out of nearly $300,000 in Economic Injury Disaster Loans (EIDL) intended for struggling businesses during the COVID-19 pandemic. Adding to the gravity of his actions, Patel also confessed to laundering more than $250,000 in connection with investor fraud schemes.
According to information shared by U.S. Attorney Ryan K. Buchanan, Patel, a 45-year-old resident of Mobile, Alabama, carried out his deceptive activities between August 2020 and March 2021. Patel’s fraudulent endeavors included submitting four EIDL loan applications that collectively requested at least $421,000 in federal funds, especially highlighting supposed business operations for his law firm, Worden & Associates.
Through these applications, Patel systematically embellished the truth, lying about the number of employees at his firm, its gross revenues, and, in at least one instance, the very existence of any legitimate business. As a result, the Small Business Administration (SBA) approved and disbursed two loans amounting to approximately $300,000.
However, instead of using the funds to cover payroll, rent or mortgage, utilities, and other essential business expenses as mandated, Patel misappropriated the loan money. Reports indicate that the funds were spent in various ways, including lavish expenditures at casinos, coverage of personal expenses, and payments towards unrelated non-business loans.
Patel’s wrongdoing did not end there. He has also been implicated in a series of investment frauds, involving his Interest on Lawyer Trust Account (IOLTA). On May 14, 2020, Patel received an investment of $350,000 from an individual who trusted that these funds would be used for an energy project. Contrarily, Patel swiftly transferred $250,000 to a person unrelated to the supposed energy project. While he was not directly involved in the fraudulent scheme, Patel was fully aware that the money he was handling stemmed from fraudulent activities targeting investors.
Patel’s sentencing has been scheduled for December 12, 2024. Due to the nature of federal charges, no booking photo is available. In the federal system, unlike state courts, booking photos are not customary.
A Cautionary Tale
This case serves as a sobering reminder of the importance of integrity within the legal profession and the broader business community. The misuse of federal aid designated to support businesses during the pandemic not only jeopardizes the aid framework but also tarnishes public trust.
Summary of Charges
- Fraudulent EIDL Loans: Submitted four deceitful applications seeking $421,000, receiving $300,000 in funds.
- Misuse of Funds: The federal loan money was spent on casinos, personal expenses, and non-business loans.
- Money Laundering: Laundered over $250,000 received from an investor through his IOLTA.
Next Steps
With Patel’s sentencing set for late 2024, the legal system will determine the punitive measures appropriate for his actions. This case will undoubtedly be followed closely by many within the legal and business communities, underscoring the severe consequences of fraudulent practices.
A Broader Issue
This incident isn’t isolated; it surfaces alongside other troubling reports of misuse of pandemic relief funds across the country. It brings to light the significant challenges faced in ensuring that aid reaches those genuinely in need and is used for intended purposes.
As more details emerge, this case may prompt further scrutiny and reforms in the process and oversight of disaster relief fund disbursement.
