Knoxville hotel owner faces federal fraud charges

Knoxville hotel owner faces federal fraud charges

KNOXVILLE (WATE) - A Knoxville man faces federal charges for allegedly trying to defraud a Kingsport bank.

Jayesh Dahyabhai Patel, 48, faces five counts of bank fraud for providing false tax return information for himself and his businesses.

Authorities say he used the false information in 2009 to get a $5.8 million loan from the First Community Bank of East Tennessee to buy and renovate the Quality Inn on Cedar Bluff Road in Knoxville.

Then in 2010, the indictment states Patel gave more false information to increase the loan to $5.8 million. Also in March 2011, he again gave false information when he went back to the bank for a second loan of $520,000.

The business he used to get these loans, QIS Knoxville, went bankrupt in 2011.

The bank foreclosed the Knoxville hotel and sold it.

Patel pleaded not guilty in court Thursday. He's been released pending trial, set for July 23 in Greeneville. If convicted he could get up to 30 years in prison, a million dollar fine and five years of supervised release.

Patel's family tells 6 News there's another side to this case, but they won't comment at this time.

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