AHMEDABAD: A Gujarati-origin man who allegedly duped investors in the US through a Ponzi scheme involving nearly $2 million has been indicted by a federal grand jury in New Hampshire on charges of wire fraud.This marks a fresh development in a case that had earlier drawn the attention of state securities regulators in the US.Kevin Patel, who founded and operated Royal Investments LLC, allegedly solicited investments from people across the US by promising to invest their money in the stock market and guarantee annual returns of 12% to 16%, according to an indictment filed in the US district court for New Hampshire on Nov 4.The indictment alleges that Patel founded the company in 2018 and marketed it as “The Company of Wealth & Trust”.Investors were promised quarterly interest payments and a full return of their principal at the end of fixed investment terms, with assurances that they would suffer no losses.However, prosecutors allege that Royal Investments was a Ponzi scheme in which almost none of the investors’ funds were actually invested.Instead, the money was allegedly diverted towards personal expenses, payments to family members and repayment of earlier investors using funds collected from new investors.The alleged scheme operated from at least Feb 2020 until April 2026. Patel allegedly ran out of funds towards the end of 2024 and stopped making interest and principal payments, leaving investors with losses running into several hundred thousand dollars.The indictment cites three wire transfers – $50,000 from New Jersey in March 2023 and two transfers of $50,000 and $30,000 from Florida in Nov and Dec 2023 – as specific instances of the alleged fraud.The latest federal action follows proceedings initiated by New Hampshire securities regulators in Dec 2025.The state had accused Patel and Royal Investments of operating without the required licences and allegedly defrauding four investors of nearly $386,000. Regulators had sought restitution, penalties and a permanent ban on securities-related activities.The federal indictment charges Patel with three counts of wire fraud. The allegations are yet to be proved in court.
