Indian-origin hotelier pleads guilty of underpaying employees

New York: A 31-year-old Indian-origin hotelier in the US has pleaded guilty to charges of underpaying his employees at two of his hotels and lying to federal investigators, according to a media report.

Mehul Chandubhai Patel, also known as Mike Patel, pleaded guilty to charges that stem from violations of minimum wage rules in connection with two hotels he operates in Battle Creek and Coldwater in Michigan, according to the US Department of Labor.

Patel appeared before Magistrate Judge Ellen Carmody in US District Court in Grand Rapids yesterday on February 2, and pleaded guilty to the crime of concealing a material fact from the federal government when obligated to disclose it, mlive.com reported.

"Patel admitted that during 2014, the Department of Labor (DOL) had found him to be in violation of minimum wage laws by underpaying his hotel employees," the government stated in a press release provided by Acting US Attorney Andrew Birge.

"He thereafter signed an agreement promising to repay his employees. When requested to provide proof that he had done so, Patel sent DOL checks indicating that back wages had been repaid. However, he concealed the fact that he required his employees to return the money to him," he said.

Patel faces up to five years in prison and other penalties. He may be ordered to pay restitution and other penalties. He is to be sentenced by US District Judge Paul Maloney.

Patel owns the Rodeway Inn on Beckley Road in Battle Creek and the Super 8 Motel in Coldwater, it said.