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Moline man gets two years in prison for bankruptcy fraud

A Moline man has been sentenced to two years in prison for falsifying records and lying under oath during bankruptcy proceedings.   

Samir A. Patel, 49, was sentenced Thursday by Chief U.S. District Judge James E. Shadid in Federal District Court in Rock Island. In addition to a 24-month prison sentence, Patel was ordered to remain on supervised release for three years at the end of his term. 

Patel pleaded guilty October 17 to the charges. 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.

“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.


 

 


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