(CHICAGO) The CEO of a Florida financial firm was arraigned in federal court in Chicago Thursday amid charges of selling $179 million in fraudulent loans to a Milwaukee investment company.
Nikesh A. Patel, the 32-year-old CEO of First Farmers Financial LLC, is charged with five counts of wire fraud for allegedly forging signatures and producing fake documents “to create the appearance that approximately 26 government-backed loans had been issued to borrowers in Florida and Georgia,” according to a statement from the U.S. Attorney’s Office.
Each fraudulent loan ranged from $2.5-$10 million.
The Milwaukee firm paid for the fake loans “as an investment vehicle for its list of clients, which included community banks, retirement plans, municipalities, and subdivisions in Illinois and elsewhere,” the statement said.
Each count of wire fraud carries a maximum penalty of 20 years in prison and restitution, plus a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater.
Patel pleaded not guilty and his next court date is scheduled for Jan. 21 at 9:30 a.m.
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