Hotel executive charged in connection with loan fraud attempts tied to Cecil County bank

0

An executive of a New Jersey-based hotel management company with properties in Delaware is facing federal charges linked to applying for bank loans from a Cecil County financial institution.

Cecil Daily reported that Mehul “Mike” Ramesh Khatiwala attempted to get loans from Cecil Bank, Elkton while working with an executive of Citibank as well as a physician-investor.

The newspaper-website reported that Khatiwala attempted to gain $15 million in loans from Cecil Bank that included buying a $5 million multi-family project in Perryville, a town in western Cecil County.

He also attempted to gain loans for hotels in Pennsylvania and Tennessee, court papers indicated.

The court filing indicated that he overstated the amount of money in an account and the percentage of ownership in an LLC.

Cecil Bank has faced financial struggles in dealing with loans and in 2017 filed for Chapter 11 bankruptcyreorganization The bank’s market area included New Castle County, DE.

Khatiwala is listed as CEO of Delaware Hotel Group, which owns Best Western hotels in north Wilmington and Smyrna, the Holiday Inn in Dover, Comfort Suitesin Dover and Knights Inn in New Castle.

The company owns more than two dozen hotels.

Facebook Comments