Indian-American man arrested in $4,00,000 ponzi case

The Alabama Securities Commission has indicted a 23-year-old Indian-American investment adviser for his alleged involvement in a Ponzi scheme that defrauded investors of over $4,00,000.

The 23-year-old investment adviser, Pathyam Patel, also known as Pat Patel, had allegedly used the money for his personal expenses like gambling, and never invested it in securities.

Patel has now been indicted on nine counts of securities law violations, according to The Times of India.

Originally hailing from Gujarat’s Gandhinagar, Pathyam Patel was arrested in the American state of Alabama, on March 6.

DECEPTIVE INVESTMENT CLAIMS

Patel was alleged to have sold unregistered investment contracts to at least six victims, promising high returns through a fictitious investment firm named ‘Infinity Wealth Management’.

Patel stands accused of selling securities to investors, promising good returns and failing to invest the money as claimed.

Patel purportedly sold investment contracts totalling over $4,00,000 to at least six investors, according to the Alabama Securities Commission (ASC).

He claimed association with Infinity Wealth Management, an investment advisory firm allegedly registered with the US Securities and Exchange Commission.

“Patel did not invest the funds as communicated to the investors. Instead, he used them for gambling on sporting events, personal expenses and paying other investors,” ASC stated.

Patel assured investors of significant profits and guaranteed the safety of their principal amount.