Pelham Man Indicted for Running a Ponzi Scheme, Defrauding Investors

CONCORD - Pelham resident Kevin Patel, 40, has been indicted on three counts of wire fraud, U.S. Attorney Erin Creegan announces. Patel will appear in federal court at a later date.

According to the indictment, Patel founded a purported investment company called Royal Investments in 2018. He called Royal Investments "The Company of Wealth & Trust." Patel solicited approximately $2 million in investments from friends and acquaintances by telling them he would invest their funds in the stock market. Patel guaranteed risk-free annual returns between 12% and 16% per year. However, Royal Investments was a Ponzi scheme. Patel did not invest the funds and instead misspent them on personal expenses and payments to family members. Patel also repaid his investors with new investors' funds. When Patel stopped getting new investors he ran out of money to repay his previous investors, causing them several hundred thousand dollars in losses.

The charge of wire fraud provides a sentence of up to 20 years in prison, up to 3 years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The FBI is leading the investigation. The New Hampshire Secretary of State's office provided valuable assistance. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case.