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A federal grand jury in New Hampshire has indicted Kevin Patel, a businessman of Gujarati origin, on three counts of wire fraud in connection with an alleged two million dollar Ponzi scheme operating across multiple American states. According to the indictment filed in federal court on November 4, Patel ran the fraudulent investment enterprise through his firm, Royal Investments LLC, mobilizing around seventeen point five crore rupees from individuals by promising guaranteed annual returns between 12 and 16 percent. Rather than trading securities as represented, prosecutors contend the collected funds were diverted toward personal living expenses, transfers to family members, and making cyclical payouts to older participants.
Guaranteed Returns Promised on Fictitious Market Investments
Patel established Royal Investments in 2018, marketing the entity under the promotional banner of The Company of Wealth and Trust. Prospective clients across various jurisdictions were assured that their capital would be placed directly into the equity markets. The enterprise promised quarterly interest distributions alongside the full return of principal capital upon completion of the contractual term, assuring participants that their portfolios carried zero downside risk.
Federal investigators found that the venture functioned as a classic Ponzi operation, where almost none of the pooled capital entered the stock market. Incoming capital from fresh participants was instead repurposed to satisfy yield obligations to early depositors, projecting an illusion of sustained operational profitability. This structural rotation concealed the true state of the enterprise until broader cash flows collapsed under mounting repayment obligations.
Multi-Year Operation Collapsed as Repayments Halted
The indictment outlines that the fraudulent operation remained active from February 2020 through April 2026. Financial scrutiny revealed that Patel exhausted the funds required to service ongoing claims toward the final months of 2024. As fresh inflows proved insufficient to meet scheduled interest obligations and capital redemptions, the firm unilaterally discontinued payouts, resulting in collective losses running into hundreds of thousands of dollars for retail investors.
The prosecution has highlighted three specific electronic transactions as primary evidence of wire fraud across state borders. These include an incoming transfer of fifty thousand dollars originated from New Jersey in March 2023. Two additional transactions, comprising fifty thousand dollars in November 2023 and thirty thousand dollars in December 2023, were transferred directly from Florida into accounts controlled by the firm, establishing the jurisdictional basis for federal wire fraud charges.
State Regulators Pursued Enforcement Actions Ahead of Federal Charges
The federal indictment represents an escalation following prior regulatory interventions initiated by New Hampshire authorities. In December 2025, state securities regulators initiated formal enforcement proceedings against Patel and Royal Investments. The state regulator charged the entity with conducting unregistered investment operations, identifying roughly three point eight six lakh dollars allegedly defrauded from four specific local investors.
The state action sought restitution for affected victims, substantial civil penalties, and a permanent ban prohibiting Patel from engaging in securities-related market activities within the jurisdiction. Under United States legal statutes, wire fraud covers fraudulent schemes executed across interstate electronic telecommunications and national banking networks. The charges outlined in the federal indictment remain allegations, requiring prosecutors to present evidentiary proof of intentional misrepresentation, illicit capital diversion, and interstate transfers during subsequent trial proceedings.
