MONTGOMERY, AL. (Diya TV) — The Alabama Securities Commission has indicted 23-year-old Indian-American investment adviser Pathyam Patel, also known as Pat Patel, for his alleged involvement in a Ponzi scheme defrauding investors of over $400,000. Patel, originally from Gujarat’s Gandhinagar, stands accused of selling unregistered investment contracts to at least six victims, promising high returns through a fictitious investment firm named ‘Infinity Wealth Management’.
Patel purportedly sold securities to investors, guaranteeing substantial profits and the safety of their principal amount. However, investigations revealed that he diverted the funds for personal use, including gambling on sporting events and covering personal expenses, instead of investing as promised.
The indictment includes nine counts of securities law violations, including ‘Fraud in the Sale of Securities’ and ‘False Statements in the Sale of Securities’, each carrying penalties ranging from two to 20 years of incarceration and fines up to $30,000 per felony.
During the period of the scam, Patel was not registered with the Alabama Securities Commission to sell securities, and the investment contracts sold were not registered either. Furthermore, Infinity Wealth Management was not registered as an investment advisor or broker-dealer.
