Pathyam Patel, a local of Gandhinagar, Gujarat, has lately been in the news for what appears to be his alleged role in the securities sales and the solicitation of money with the promise of substantial profits. Allegedly involved in a $400k Ponzi scam, an individual from India is facing charges in Alabama. Recent events have brought Gandhinagar resident and 23-year-old Pathyam Patel under investigation for allegedly selling securities and soliciting money with big return claims.
It should be noted that the money was not put into securities but was spent for personal spending only. Officials from the Alabama Securities Commission (ASC) have verified that a person named Patel, who is also known as Pat Patel, resides in Alabama. A guy was apparently taken into custody on March 6 for allegedly violating multiple securities laws, as reported by the Times of India.
There are unnamed claims against Pathyam Patel, which has put him under investigation. According to new information, Patel is now facing indictment for allegedly offering investment contracts worth more than $400,000 to at least six different individuals. In a statement, the ASC addressed allegations that Patel misrepresented his relationship with Infinity Wealth Management. As per the ASC’s findings, Patel asserted that the investment advice firm had an SEC registration.
According to Patel, investors have reaped substantial profits from his strategic fund investments. Rest assured, the primary sum will not be lost, according to the speaker. According to reports, Patel, who is facing accusations of embezzling investor funds, notified them that they would need to pay extra fees in order to safeguard their investments.
When he said he would invest the money for the investors, Patel never delivered. The money was not put to its proper use; instead, it was utilized to compensate additional investors, cover personal costs, and bet on sporting events. Patel stated unequivocally that he was unable to provide investors with any assurance that they would not incur a loss of money.
The Alabama Securities Commission (ASC) failed to uncover Patel’s alleged involvement in the scheme because he was not registered to offer securities in the state. New evidence suggests that Patel did not register his investment contracts with the ASC. Infinity has recently issued a statement clarifying that it is neither a registered broker-dealer or financial advisor.
The Ponzi scheme is defined as an investment fraud that uses the money of new investors to pay off existing investors, according to Investor.gov. The organizers of fraudulent investment schemes frequently use the promise of large returns to entice naive victims, all the while omitting any indication of the hazards involved. Many Ponzi schemes have participants who have decided not to put their money into the schemes.
It appears that the allocated money are not being used as intended, particularly to compensate the early investors, according to recent studies. certain have speculated that certain people may keep some of the money.