ATLANTA — An attorney who formerly 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 over $250,000 for investor fraud schemes.
According to U.S. Attorney Ryan K. Buchanan, between August 2020 and March 2021, Sanjay Patel, 45, of Mobile, Alabama, submitted four fraudulent EIDL loan applications to the Small Business Administration (SBA) asking for at least $421,000 to operate his business, including his law practice, Worden & Associates.
On the applications, Patel repeatedly lied about the number of employees his law firm employed, its gross revenues, and at least one application, the existence of his business.
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The SBA funded two of his loans totaling about $300,000.
Instead of spending the funds on things like payroll, rent or mortgage, utilities, and other ordinary business expenses, Patel spent the loan money on various things, including spending money at casinos, personal expenses, and payments towards non-business loans.
In addition to the fraudulent loans, Patel used his Interest on Lawyer Trust Account (IOLTA) to launder money from various investment frauds.
On May 14, 2020, Patel received $350,000 from an investor who believed the funds were going to be used for an energy project.
But Patel immediately wired $250,000 to someone unrelated to the investment.
Although Patel was not involved in the fraudulent activity, he knew the funds were derived from investor fraud schemes.
Patel will be sentenced on Dec. 12, 2024.
A booking photo is unavailable because Patel faces federal charges. Booking photos are not taken in the federal system.
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