After defrauding five freight companies out of $2.6 million, ex-fugitive Rajendra Patel pleaded guilty on August 9th to second-degree theft by deception. The 62 year old was indicted in 2011 for his crimes, but he fled the country. After 8 years on the run, he returned to the United States this month and surrendered to the Division of Criminal Justice.
The recommended sentencing for Patel’s crimes, given by the state, is seven years in state prison, along with paying the full restitution of $2.6 million back to the brokers. September 13th is the scheduled date of his sentencing.
Story By Malik
The former resident of Jersey City, along with two co-conspirators who are still fugitives, would build a line of credit with the freight brokerage companies, who are paid to help companies that need a carrier to take their freights and a carrier that agree to move the companies’ shipments. His scheme included posing as either Prime Time Freight or Diamond Freight Solutions as the company needing a carrier and posing as PRP Enterprises as the carrier. The brokers would hire both entities without realizing they were owned by Patel and his co-conspirators, resulting in the brokers getting paid by Prime Time Freight or Diamond Freight Solutions after paying PRP Enterprises.
The brokerage companies would at first trust Patel and his companies through a strong accumulation of a line of credit, as Patel and his alleged co-conspirators had actual shipments moved through major freight carriers and independent drivers. After confidence was build between the two parties, however, PRP Enterprises would cease to move any more shipments and send false invoices and documents to the brokers. They would then illegally launder the money by transferring it between the companies and people in their personal lives. As a result, the five brokerage companies were paid with their own money by Patel and his alleged associates, as well as paying PRP Enterprises $3.9 million. $2,630,883 in total was still owed by Prime Time Freight and Diamond Freight Solutions, as the five brokers together loaned $4.7 million and only received $2.1 million.
“Thanks to the work of our prosecutors and detectives, this longtime fugitive is facing justice for perpetrating a multimillion-dollar fraud scheme targeting the freight industry,” said Attorney General Grewal. “Con artists like this defendant harm honest business operators and impose huge costs which ultimately impact consumers as well.”
