Georgia Attorney Pleads Guilty to COVID Relief Loan Fraud and Money Laundering

Sanjay Patel, a former Georgia-based real estate attorney, has pleaded guilty to fraudulently obtaining nearly $300,000 in Economic Injury Disaster Loans (EIDL) and laundering over $250,000 through his attorney escrow account. Patel, who ran the law firm Worden & Associates, was convicted of submitting false loan applications to the Small Business Administration (SBA) between August 2020 and March 2021.

In court, U.S. Attorney Ryan K. Buchanan stated, “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. 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.”

Tommy D. Coke, Inspector in Charge of the Atlanta Division for the U.S. Postal Inspection Service, added, “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. 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 for your criminal activity.”

Edwin S. Bonano, Special Agent in Charge of FHFA-OIG’s Southeast Region, said, “This guilty plea is a testament to our commitment to holding accountable those who engage in financial fraud.”

Keri Farley, Special Agent in Charge of FBI Atlanta, remarked, “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. This plea proves that no matter how much time has passed, if you commit financial crimes and steal from American taxpayers, you will be held accountable.”

Patel fraudulently applied for four EIDL loans totaling at least $421,000, misrepresenting his law firm’s employee count and gross revenues. The SBA funded two loans amounting to approximately $300,000. Patel used the loan proceeds for personal expenses, including casino spending, and to pay non-business loans.

Additionally, Patel laundered investor funds using his Interest on Lawyer Trust Account (IOLTA). He received $350,000 from an investor believing the funds were for an energy project but quickly wired $250,000 to unrelated entities. He also laundered over $132,000 from another investment scheme.

Patel, 45, of Mobile, Alabama, is scheduled for sentencing on December 12, 2024, at 3:00 p.m. before U.S. District Judge Steve C. Jones. The case is being investigated by the United States Postal Inspection Service, FBI, Federal Housing Finance Agency – Office of Inspector General, and Federal Deposit Insurance Corporation – Office of Inspector General. Assistant U.S. Attorney Alex R. Sistla is prosecuting the case.