May 29, 2015
By Bob Coleman
Editor, Fraud Friday
The Milwaukee Journal Sentinel reports more fallout from the Nik Patel, $180 million USDA B&I loan fraud.
The investment company that purchased the loans from Nik Patel’s company, First Farmers Financial, and sold them primarily to Illinois municipalities as “safe” investments has padlocked its doors.
The website for Pennant Management states the company has closed and is in the process of de-registering as an investment advisor.
What is the size of the loss? It appears at least $80 million.
‘According to a court filing this month, Pennant’s Chicago law firm, Greenberg Traurig, working with the court receiver, has been able to preserve about $100 million in assets from the defendants, with the goal of liquidating them to help investors recover losses.’
The alleged fraud was uncovered when Pennant discovered some hotel addresses held as collateral for the loans were non-existent.
Google and Google Street View can be your friend!
Nik Patel was arrested last year and is free on $100,000 bond.