A New Jersey man is facing federal prison for his role in a multimillion-dollar bank fraud conspiracy.
Rajendra G. Parikh has been sentenced to two years in jail after illegally obtaining more than $35 million in SBA-guaranteed loans from financial institutions to buy and flip hotels.
The FDIC Office of Inspector General claims that between 2018 and 2020, Parikh and co-conspirators made substantial misrepresentations about sellers’ identities, familial affiliations, and equity injections during the loan application process.
The organization set up shell firms with straw owners to manage both sides of the transactions and solicit loans under false pretenses.
Prosecutors said financial firms approved the loans based on misleading assertions.
Co-conspirators Mehul Ramesh Khatiwala and Jennifer H. Watkins were sentenced to seven and three years, respectively.
In addition to his prison sentence, Parikh will serve three years of supervised release and has been ordered to forfeit $6 million and pay over $6 million in reparations.
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