Nikesh A. Patel, 32, the chairman and CEO of Orlando-based First Farmers Financial LLC, was charged with five counts of the wire fraud.
It was stated that he forged signatures and produced false documents to create the appearance that approximately 26 government-backed loans, had been issued to borrowers in Florida and Georgia. The sham loans amounts ranging from $2.5 million to $10 million. Patel allegedly sold the fraudulent loans to a Milwaukee investment firm, for $179 million.
The indictment contends that Patel submitted false statements to the Milwaukee firm to secure the sale of the phony loans. The fabrications included a false guarantee that the United States Department of Agriculture (USDA), an executive department responsible for developing and executing federal government policy on farming, agriculture, forestry, and food in the US, had backed a portion of the loans’ principal amounts. First Farmers reportedly obtained certification to participate in the programme after Mr. Patel submitted false statements to the USDA about his company's assets and officers.
The Milwaukee firm paid as the investment vehicle for its list of clients, which included community banks, retirement plans, municipalities, and subdivisions in Illinois and elsewhere.
Nikesh pleaded not guilty to all the charges and scheduled for Jan 21, 2016 for his next appearance. He is looking for a maximum penalty of 20 years and a maximum fine of $250,000 for each count of wire fraud if proven guilty in the court.