GRAND RAPIDS, MICHIGAN (TIP): An Indian American Hotel Owner Mehul Chandubhai Patel, a/k/a “Mike Patel,” 31, of Battle Creek, Michigan, on Aug 21 was ordered to pay restitution of $150,500 to his former employees, Acting U.S. Attorney Andrew Birge announced. The restitution order is the last stage of Patel’s sentence for lying to Labor Department investigators during their probe into his violation of minimum wage laws while operating two hotels operated by him, in Battle Creek and Coldwater, Michigan. Patel is currently serving a 60-day sentence imposed in U.S. District Court on May 24, 2017 for the offense.

 On February 2, 2017, Patel appeared in federal court and pled guilty to violating 18 U.S.C. 1001(a)(1), a federal statute that prohibits anyone from concealing a material fact from the federal government when obligated to disclose it. He admitted that during 2005, the Department of Labor (“DOL”) had found him to be in violation of minimum wage laws by underpaying his hotel employees. He thereafter signed an agreement promising to repay his employees. When requested to provide proof that he had done so, Patel sent DOL checks indicating that back wages had been repaid. However, he concealed the fact that he required his employees to return the money to him immediately after cashing them.

 U.S. District Judge Paul Maloney delayed imposing restitution at the sentencing hearing, advising the parties that he would decide the matter in August if they could not reach an agreement on the amount of restitution. On August 18, 2017, the U.S. Attorney’s Office reached an agreement with Patel that he would immediately pay $150,500 to the Department of Labor, for disbursement to his former employees. This will result in no further action against him for back wages, either in criminal or civil court.

 Acting U.S. Attorney Birge commented that “Putting Patel in jail for cheating his financially distressed employees was important, but so is making sure they are paid what they are owed. This settlement allows them to be repaid right away, rather than waiting months or years.” Birge praised the help provided by the Chicago Office of the Department of Labor for its help in reaching a settlement that satisfied both criminal restitution and civil damages issues.

(Source: USAO, Michigan)