Nik Patel’s Fraud Continues – Wife Pleaded Guilty for Her Role in a Loan Fraud Scheme

June 17, 2024

Delaney Sexton
Contributing Editor

Nik Patel’s Fraud Continues – Wife Pleaded Guilty for Her Role in a Loan Fraud Scheme

Nikesh Patel carried out two fraud schemes where he created fictitious loans and used fraudulent means to have them guaranteed by the USDA or made them appear to be guaranteed by the USDA. Then he would sell the guaranteed portion of the loans. He was sentenced to 25 years for the first scheme and is waiting to be sentenced for the second scheme. Recently, he took part in a third fraud scheme, and this time, his wife was involved.

In April of this year, Trisha Patel pleaded guilty to conspiracy to commit wire fraud. Nik Patel helped Trisha operate the scheme while imprisoned. The scheme followed the same blueprint of creating fictitious loans and claiming the USDA guaranteed the loan so that they could sell the guaranteed portion. In this scheme, they created a fictitious lender and a fictitious loan officer. This fraud operation differs from the previous ones because they used a legitimate business for the fraud. The couple purchased Precision Powered Products, Inc. (PPP) and claimed they needed a loan to expand its operations into Puerto Rico. After making it appear that the fake lender, Community 1^st Mortgage, loaned them the money, they applied for and received an 80% guarantee from the USDA.

Community 1^st “loaned” the business $8.54 million, and the Patels received over $7.44 million from selling the guaranteed portion. The lender that purchased the loan, Hanover Securities, broke the loan down into smaller parts and resold those portions to smaller banks. Trisha was making loan payments for each of the smaller loans, but the loans all went into default since her arrest.

Source:
Trisha Patel Plea Agreement