Local News in Brief : Settlement in Hotel Fraud
The owners and operators of two downtown Los Angeles hotels agreed Tuesday to pay more than $33,000 to settle a district attorney’s lawsuit accusing them of trying to cheat the county welfare system.
Named in the stipulated judgment, signed in Los Angeles Superior Court, were Hasmukh(Mike) Patel and his wife, Gita, owners of the Holland Hotel and the Bixby Hotel, and Patel’s brother, Mahendra (Steve), manager of the Holland Hotel.
In its lawsuit, the district attorney’s office accused the Patels of overcharging the county by falsifying vouchers that are used to provide emergency housing for indigents. Last January, Steve Patel, the only member to be criminally charged in the case, was sentenced to 180 days in jail after he pleaded guilty to forgery.
The scheme was uncovered by district attorney’s investigators posing as poor people.
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