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  7:58 a.m. May 30, 2014
Knoxville Hotel owner indicted for bank fraud


KNOXVILLE — A federal grand jury charged Knoxville hotelier Jayesh Dahyabhai Patel, 48, of Knoxville on May 13, 2014 with five counts of bank fraud.

Patel pled not guilty and was released pending trial, which has been set for July 23, 2014.

According to the indictment, Patel engaged in a scheme from January 2009 through August 2011 to defraud First Community Bank of East Tennessee, Kingsport, in connection with a $5.8 million loan to his business, QIS Knoxville LLC, to purchase and renovate the Quality Inn at Cedar Bluff. Patel allegedly provided false income tax returns for himself and his businesses to persuade First Community Bank to issue the loan. Patel then further schemed to defraud First Community Bank by providing false invoices to induce the bank to disburse loan funds and by providing additional false tax returns to obtain an increase in the amount of the loan and to obtain a six-month interest only payment period. The indictment also alleges that Patel fraudulently induced First Community Bank to make a second loan to finance the sale of a motel by Patel to a relative by providing false information as to the down payment on the purchase.

If convicted, Patel faces a term of 30 years in prison, a $1,000,000 fine, and five years of supervised release.


Published May 30, 2014

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