Midsouth Bank Accuses Arkansas Convention Center Owner of Fraud

MidSouth Bank of Lafayette, Louisiana, has asked a bankruptcy court judge not to allow Dr. Hiren D. Patel, who owns the Arkansas Convention Center & Holiday Inn in Texarkana, to be allowed to walk away from a $13.3 million debt he owes the bank. The bank said Patel “did knowingly and fraudulently … make a false oath or account” when he obtained the loans, the bank said in an August filing in U.S. Bankruptcy Court in Texas. It asked the bankruptcy court judge to deny a discharge of the debt. Patel, and his wife, Nila, along with two of Patel’s companies, are in Chapter 11 bankruptcy in Texas. Between May 2010 and September 2013, the bank made a series of loans to Patel’s companies to build and furnish the Country Inn & Suites in Texarkana, Texas, and the convention center and hotel project on the Arkansas side of the city. At the end of March 2016, $13.3 million was still owed on the loans, according to the bank’s filing. The bank said that instead of using the money for the properties as required, Patel transferred at least $1.3 million to his other companies or to his father, Dineshchandra Patel, sometimes called Dinesh, who has an ownership interest in his son’s companies. The bank said that Hiren Patel was the one who contributed all the money to the companies. His father, “on the other hand, contributed virtually nothing,” MidSouth Bank said. “He guaranteed no debt. He carried none of the risk.” Mi...
Source: Arkansas Business - Health Care - Category: American Health Source Type: news