DNA Lodging East Hartford LLC Organizer Charged with Fraud | Recover Investment Losses

DNA Lodging East Hartford LLC Organizer Charged with Fraud | Goodman & Nekvasil P.A. May Recover Investor Losses

According to the SEC: 

The Securities and Exchange Commission today charged Connecticut resident Rahulkumar M. Patel in connection with a fraudulent offer of securities related to a hotel renovation investment that was conducted through an online crowd funding site.

According to the SEC’s complaint, Patel organized a Connecticut company, DNA Lodging East Hartford LLC, to lease, renovate, and reopen a closed hotel located in East Hartford, Connecticut. The complaint alleges that between October and December 2018, Patel raised $2,750,500 from 70 investors he solicited to purchase securities in DNA on an online crowd funding platform. As alleged, Patel provided investors a private placement memorandum stating DNA would use $1,465,000 of the proceeds to acquire a lease in the hotel from the property owner. In fact, the complaint alleges, Patel acquired the lease from the property owner himself for $540,000 and assigned it to DNA for $1,465,000, pocketing the $925,000 difference. The complaint further alleges the documents that Patel provided investors failed to disclose his role in the acquisition of the lease or any compensation he might receive in connection with the lease, although it specifically enumerated other compensation to which he might be entitled. Patel allegedly concealed his actions from investors in DNA by operating behind several companies, including one that he organized under the same name as the property owner and used to interpose himself in the deal to acquire the hotel lease.

Investors in DNA Loding East Hartford LLC May Recover their Losses with Goodman & Nekvasil, P.A.

If you invested in DNA Lodging East Hartford LLC, Goodman & Nekvasil, P.A. may help you. Goodman & Nekvasil, P.A., a St. Petersburg, FL law firm with a national practice representing victimized investors, has recovered more than $200 million dollars on behalf of victimized investors.

All our cases are handled on a purely contingency fee basis by Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA. Kalju Nekvasil, Esq. has practiced in this area of the law for more than 35 years.

There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.

If you incurred investment losses with DNA Lodging East Hartford LLC and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.

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