ATLANTA - Sanjay Patel, a former attorney who operated a Georgia-based real estate law firm, has pleaded guilty to fraudulently obtaining nearly $300,000 in Economic Injury Disaster Loans (EIDL) during the COVID-19 pandemic and laundering more than $250,000 from unrelated investor fraud schemes through his attorney escrow account.
"This office will remain steadfast in coordinating with our federal law enforcement partners to identify and hold accountable those who defrauded the government’s COVID relief programs," said U.S. Attorney Ryan K. Buchanan. "It is especially aggravating that Patel, an attorney, not only used his professional standing to commit money laundering, but he also defrauded the American taxpayer out of hundreds of thousands of dollars."
Patel’s guilty plea marks another step in the ongoing effort to combat pandemic-related fraud. Federal authorities have worked since the early days of the pandemic to address the misuse of relief funds aimed at supporting small businesses.
According to prosecutors, between August 2020 and March 2021, Patel submitted four fraudulent EIDL applications to the Small Business Administration (SBA), seeking at least $421,000. In these applications, Patel misrepresented the number of employees at his law firm, Worden & Associates, its gross revenues, and, in at least one case, the very existence of the business itself. Based on his misrepresentations, the SBA disbursed two loans totaling about $300,000.
Rather than using the funds for legitimate business expenses such as payroll, rent, or utilities, as required under the EIDL program, Patel spent the money on personal expenses, including gambling at casinos and paying off non-business loans.
In a separate scheme, Patel used his Interest on Lawyer Trust Account (IOLTA) to launder proceeds from fraudulent investment deals. On May 14, 2020, Patel received $350,000 from an investor who believed the funds were intended for an energy project. Patel, however, immediately wired $250,000 to an unrelated entity. A similar scheme occurred in June 2020, when Patel laundered over $132,000 from another fraudulent energy investment by making a series of wire transfers to unrelated accounts.
Although Patel was not directly involved in orchestrating these fraudulent investments, prosecutors argued that he was aware the funds were derived from fraud schemes.
"The U.S. Postal Inspection Service will continue to ensure fraudsters who sought to enrich themselves with funds from pandemic-assistance programs are held accountable," said Tommy D. Coke, Inspector in Charge of the Atlanta Division. "This case serves as a reminder to individuals that engage in unlawful activity that law enforcement will spare no resource to bring you to justice."
Keri Farley, Special Agent in Charge of FBI Atlanta, reinforced this message. "Even after four years, the FBI and our partners will continue to seek out anyone who abused their positions to defraud the government during the COVID-19 pandemic."
Patel, 45, of Mobile, Alabama, is scheduled to be sentenced on Dec. 12 before U.S. District Judge Steve C. Jones.