Candance Hom
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Chan Patel - criminal activity

Hotel and banking entrepreneur Chan Patel is seen by many as the banking and hotel titan behind State Bank of Texas and the takeover of Millennium Bank of Texas, albeit through a questionable sale in which the Federal Deposit Insurance Corporation (“FDIC”) may not have known they may have been partnering with a notorious criminal. A multitude of complaints regarding possible unscrupulous business practices have surfaced severely questioning Chan Patel’s activities in both banking and hotel ownership. Public records, investigations and complaints highlight “bad boy” acts such as bank fraud, defrauding the government and U.S. Small Business Administration, predatory lending, insider lending, self-dealing, IRS tax fraud, racketeering, breach of contract, breach of fiduciary duty,defrauding business partners, bribery, pandering *** and even the outright theft of real estate property. Chan Patel’s business holdings are a complicated web of companies owned “on paper” by primarily family members and give question to exactly why the need for so many companies and their actual purposes, especially since these companies are all financed by his “piggy-bank”, State Bank of Texas. For example, one insider revealed, “Priya Hospitality, LLC is a hotel in New York City owned by Chan Patel and his business partners, Vipul Patel et al. Chan Patel’s inherent greed caused him to literally steal the hotel by “squeezing out” his partners’ financial interests, which resulted in a dispute and publicly filed lawsuit. Ironically, Chan Patel lent money to Priya Hospitality using the State Bank of Texas, but concealed his true ownership to circumvent insider lending, legal lending limit and self-dealing restrictions through the use of a shell company known as TIC Capital II, LLC to invest in Priya Hospitality, LLC. This is bank and tax fraud by not declaring true ownership since TIC Capital II, LLC and other shell companies are registered at his home address.” It has been suggested by some that the purpose of these shell companies is to circumvent laws governing insider lending, legal lending limits, and self-dealing restrictions. Requests are being made of the IRS, FDIC, DOJ and other federal agencies to take a closer look at the dealings of the State Bank of Texas and Chan Patel. Here are additional concerns further evidence illegal activity: • Gangotri, LLC is a Days Inn by Wyndham hotel in the Bronx, NY that is owned by Chan Patel’s daughter, Toral Balakrishnan. • Sushil Patel is Toral Balakrishnan’s brother and also the same loan officer at the State Bank of Texas who lent over $4,000,000 to his sister. Ironically, the only signor on the loan documents is the cousin, Sanjay Patel, in order to mask and conceal true ownership for the sole purpose of circumventing insider lending, self-dealing and legal lending limit restrictions by the FDIC and Texas Department of Banking & Finance. • Brisam West 29, LLC is a Doubletree by Hilton hotel in New York City that Chan stole from his former business partner, hotel developer Sam Chang. Chan Patel also violated the FDIC’s insider lending, self-dealing and legal lending limit restrictions by using his son, Rajan Patel, as a straw borrower and lent him over $30,000,000. Chan Patel uses his bank, State Bank of Texas, and a friend’s bank, National Republic Bank of Chicago, to conceal the fraud and buy/sell loan participations. • NSR Technologies is a company that Chan Patel and the State Bank of Texas owns, yet lent money to the entity and swiftly defrauded the U.S. Small Business Administration by immediately defaulting on the loan. Chan Patel self-admits this crime in an email sent from the State Bank of Texas servers under review by the governmental authorities. In addition to unscrupulous business dealings, Chan Patel has admitted to furnishing hourly rate rooms, which are well known to be havens for both prostitution and drug use. These “hot sheet” motels are cancerous, and erode and the fabric of any community which they are in. They become focal points for drug use and criminal activity and effectively poison the entire neighborhood in which they reside. However, Mr. Patel seems to have no problem with this ethical concern since accordingly to another insider, “Chan Patel would sell his mother to make a buck”. As Michael Davis of the Dallas Progressive Blog is fond of remembering, Chan Patel admitted to the Dallas Morning News that he “sometimes charged hotel fees by the hour to earn money the old fashioned way by marketing to *** and drug dealers”. It is our belief that anyone considering doing business with Chan Patel or the State Bank of Texas should be well aware of the facts regarding this individual and business, and further be aware of the documented claims made. We ask that all persons visit and view the attached documents. If you or anyone you know has been conned and defrauded by Chan Patel, his family, affiliate enterprises, or the State Bank of Texas, we ask that you contact the Better Business Bureau, Federal Deposit Insurance Corporation, Internal Revenue Service, Department of Justice, Department of Treasury, Federal Bureau of Investigation and/or Homeland Security with this information.
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