Indian-American man arrested in connection with $400,000 Ponzi scheme

The Alabama Securities Commission charged a 23-year-old Indian-American investment adviser with participating in a Ponzi scheme that defrauded investors of more than $400,000.

Investment adviser Pathyam Patel, 23, also known as Pat Patel, allegedly used the money for personal expenses such as gambling and never used it Invest in securities.

According to the Times of India, Patel has now been indicted on nine counts of violating securities laws.

Pathyam Patel, from Gandhinagar, Gujarat, was arrested in Alabama, United States, on March 6.

Deceptive investment claims

Patel is accused of selling unregistered investment contracts to at least six victims, promising high returns through a fictitious investment company called “Infinity Wealth Management.”

Patel is accused of selling securities to investors, promising good returns but failing to invest the funds as claimed.

According to the Alabama Securities Commission (ASC), Patel allegedly sold investment contracts totaling more than $400,000 to at least six investors.

He claimed to be affiliated with Infinity Wealth Management, which is said to be an investment advisory firm registered with the U.S. Securities and Exchange Commission.

“Patel did not invest in accordance with the information communicated to investors. Instead, he used the funds for gambling on sports events, personal expenses and payments to other investors,” the ASC said.

Patel guaranteed investors healthy profits and the safety of their principal.

However, the investigation showed that he misappropriated funds for personal use and did not have the ability to protect the safety of investors’ funds.

“Patel did not invest in accordance with the information communicated to investors. Instead, he used the funds to gamble on sports events, personal expenses and make payments to other investors. Patel had no ability to guarantee that investors would not lose their principal. (amount),” the ASC said.

At the time of the fraud, Patel was not registered with the ASC to sell securities in Alabama.

In addition, the investment contracts sold by Patel were not registered with the ASC, nor was Infinity Wealth Management registered as an investment adviser or broker-dealer, the statement said.