Orlando: Orlando businessman Nikesh A Patel was arrested by the FBI on allegations that he fraudulently sold $150 million in loans, reports the Orlando Sentinel. Authorities allegedly claim that 25 loans were sold to a Milwaukee company as being guaranteed by the US Department of Agriculture. Patel was released on $100,000 bond and his attorney, Mark NeJame, said that Patel denies the allegations and nothing has been proved.
Meanwhile, Patel who has allegedly been facing criminal charges and a $72 million lawsuit has agreed to sell five hotels, two multimillion-dollar homes, several luxury brand watches, a Rolls Royce, a Lamborghini, and gold coins.
“We agreed we were going to sell some assets off,” NeJame said. “He’s acknowledging that he owes some of the money, and he is doing the right thing by selling some assets and giving the money to the people he owes,” a report in Orlando Sentinel said. The asset sales were outlined in an order for the civil case where Patel allegedly owes money to Milwaukee-based Pennant Management. Patel and Pennant negotiated the sales, and US District Judge Amy St. Eve signed the order.
Pate's rise in Orlando business community was quick. Before the age of 30, he had opened a restaurant downtown and launched his financing company, First Farmers Financial. Only a year ago, his hotel company Alena Hospitality went on a buying spree.
First Farmers sold a group of loans to Pennant totalling $179 million in value. According to the civil lawsuit and criminal charges outlined by the FBI, Patel created fake documents stating that the loans were guaranteed by the US Department of Agriculture, when they were not. Selling the assets listed in Tuesday’s order will not satisfy Pennant’s entire claim, NeJame said.
Other investors who did business with Patel are not included in the order signed on Tuesday. Pennant will have final say on sale of hotels, and proceeds from the sale will go to Pennant. In addition to the sale of assets, First Farmers will immediately pay $6.1 million to Pennant.
