Moline Man Sentenced to Two Years in Prison for Falsifying Records, Making False Statements Under Oath in Bankruptcy Proceedings
ROCK ISLAND, Ill. -- A Moline, Ill., man, Samir A. Patel, 49, was sentenced today for bankruptcy fraud. Chief U.S. District Judge James E. Shadid ordered Patel, of the 3600 block of 73rd Street, to serve 24 months in prison, and upon release from prison, to remain on supervised release for a three-year term.
On Oct. 17, 2017, Patel pleaded guilty to the charges as alleged in the indictment that he falsified records and lied under oath related to bankruptcy proceedings. After filing a bankruptcy petition in June 2013 to discharge his debts under Chapter 7 of the U.S. Bankruptcy Code, in August and September 2013, Patel provided the Bankruptcy Trustee with altered bank statements and summaries of his bank account.
In addition, Patel admitted that he falsely testified under oath in a bankruptcy proceeding, a September 2013 meeting of creditors, that a $5,000 wire transfer deposit into his account was a loan from a friend of his wife to help the couple pay living and business expenses. In fact, the deposit was a $315,000 wire transfer from a law firm related to a business transaction and which Patel was attempting to conceal from creditors and the Bankruptcy Trustee.
The charges resulted from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the U.S. Attorney for the Central District of Illinois. The charges were investigated by the U.S. Postal Inspection Service and the IRS Criminal Investigation Division, in collaboration with the Central Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. Assistant U.S. Attorney John K. Mehochko prosecuted the case.
“Criminal bankruptcy fraud threatens the integrity of the bankruptcy system, as well as public confidence in that system,” stated Nancy J. Gargula, U.S. Trustee for Central Illinois, Southern Illinois and Indiana. “I am grateful to U.S. Attorney Childress and our law enforcement partners for their strong commitment to combating bankruptcy related crimes, as demonstrated by today’s sentencing.”
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.