April 17, 2015
By Bob Coleman
Editor, Fraud Friday
Accused of a $150 million fraud in fake USDA B&I loans, Nik Patel is voluntarily selling all of his assets through a receiver to help Pennant Management recoup some of the funds.
After selling five hotels for $87 million, the mansion Nik bought in November 2013 for $4 million is also gone.
The Orlando Sentinel’s Paul Brinkman reports:
‘It was a complicated deal because of the fraud allegations surrounding Mr. Patel, but we were pleased with the end result,’ [realtor] Hamzehloui said.
The buyer is an investment team that includes Ira Kitograd of Winter Park and attorney Todd South of the law firm South Milhausen. Kitograd, of IBK Construction, has been building high-dollar custom homes in Central Florida for decades.
‘We felt this parcel has a lot of value,’ Kitograd said. “The house was very nice, but the location is the real attraction.’
Patel had gutted the home almost entirely, preparing for a lavish renovation. The house was formerly owned by the late James English, former CEO of United Medical Corporation. It’s just a short walk away from the home of former NBA player Shaquille O’Neal.
‘We intend to develop it, and there are people interested in the property,’ Kitograd said. ‘The lot has long lake views, great sunsets. It’s probably a two-year project. It takes time to develop plans.’
The sale is an indication that values Patel paid for his properties were high, even for a recovering real estate market. According to county records, Patel paid $4.05 million in November of 2013 for the Windermere mansion.
Nik has pled not guilty to criminal fraud charges and is ‘cooperating with federal authorities.’
Check out a video with the realtor talking about the property here.