23-Year-Old Indian Investment Adviser Arrested for $400,000 Ponzi Scheme

Written on 04/06/2024
Asia91 Team


Pathyam Patel, a young investment adviser, was indicted for running a Ponzi scheme in Alabama, tricking investors out of over $400,000 for personal use, including gambling.

 

In a shocking case of financial fraud, Pathyam Patel, known as Pat Patel, a 23-year-old investment adviser from Alabama, has been charged with deceiving investors through a Ponzi scheme. This scheme led to losses exceeding $400,000, as Patel allegedly used the invested money for personal expenses rather than the promised financial ventures.

 

What Happened:

 

  • The Scheme: Patel convinced at least six individuals to invest over $400,000 in unregistered investment contracts with promises of high returns.
  • Misuse of Funds: Instead of investing the money as promised, Patel allegedly used it for personal luxuries, including gambling on sports, and to pay off earlier investors.
  • Legal Actions: He now faces nine counts of securities law violations and was arrested in Alabama on March 6.

 

How Patel Operated:

 

  • Deceptive Claims: Patel claimed to represent Infinity Wealth Management, which he falsely stated was registered with the US Securities and Exchange Commission.
  • False Guarantees: He assured investors of high profits and the safety of their principal amount, which he ultimately could not uphold.
  • Lack of Registration: Investigations found that neither Patel nor his firm was registered with the necessary financial regulatory bodies to offer or sell investment products.

 

Pathyam Patel's arrest serves as a cautionary tale about the importance of thorough due diligence before investing. It highlights the risks associated with entrusting funds to unverified and unregistered investment advisers. 

 

The case underscores the vigilant efforts of regulatory bodies like the Alabama Securities Commission to protect investors from fraudulent schemes. As the legal process unfolds, Patel's indictment reminds potential investors to remain wary of offers that seem too good to be true.

 

For more details on this case, refer to announcements by the Alabama Securities Commission.

 

 

 


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