Federal prosecutors have indicted Kevin Patel, 40, of Pelham, on three counts of wire fraud, saying he ran a Ponzi scheme and solicited about $2 million from friends and acquaintances. U.S. Attorney Erin Creegan's office announced the charges Nov. 5. The state's own case against him covers a much smaller figure, and neither government document explains the difference.
What prosecutors allege
A Ponzi scheme pays earlier investors with money from newer ones instead of from real investment gains. According to the indictment, Patel founded a purported investment company, Royal Investments, in 2018 and called it "The Company of Wealth & Trust." Prosecutors say he told people he would invest their money in the stock market and guaranteed risk-free annual returns of 12 percent to 16 percent.
Prosecutors allege he did not invest the funds. They say he spent them on personal expenses and payments to family members and paid earlier investors with money from newer ones. When new investors stopped coming, the office says, he ran out of money, and the earlier investors lost several hundred thousand dollars.
Two documents, two figures
The state's Bureau of Securities Regulation acted first. In a Dec. 15, 2025 order, the Secretary of State's office found that Patel and Royal Investments, LLC solicited $386,000 from four investors between November 2023 and August 2024. It ordered them to stop violating state securities law, barred them from the securities business in New Hampshire, and directed them to pay $330,040 in restitution and a $55,000 fine.
The federal release puts the amount at about $2 million, roughly five times the state's $386,000, by the Signal's arithmetic. The state order covers four investors between November 2023 and August 2024. The federal release does not say how many investors were involved or over what period, and the state order does not address the $2 million figure.
The state order said it would become final unless the respondents requested a hearing within 30 days. The Bureau lists the order on its enforcement page; this report did not determine whether a hearing was requested.
What happens next
Patel will appear in federal court at a later date. The release notes that the charges are allegations and that he is presumed innocent unless proven guilty. It does not include a statement from Patel or an attorney for him.
Wire fraud carries up to 20 years in prison, up to three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. A federal judge would set any sentence under the sentencing guidelines and statutes. The FBI is leading the investigation, the Secretary of State's office assisted, and Assistant U.S. Attorney Alexander Chen is prosecuting.