South Bay hotel owner reportedly made false statements on CARES Act grant application

Posted 9/20/21

The Palm Beach County Office of Inspector General has ordered a South Bay hotel owner to reimburse $3,750 in aid

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South Bay hotel owner reportedly made false statements on CARES Act grant application

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WEST PALM BEACH – The Palm Beach County Office of Inspector General has ordered a South Bay hotel owner to reimburse $3,750 in Coronavirus Aid, Relief and Economic Security (CARES) Act grant funds to Palm Beach County after finding he made false statements on the grant application.

According to the report, released Sept. 20, 2021 Dilip Patel, the president and owner of Kahna BG 2015 LLC (Okeechobee Inn), made an application for the CARES Act grant funding after he had already been approved for a Paycheck Protection Program forgivable loan. On May, 5, 2020 the PPP loan funds were deposited in his account. On June 8, 2020 when he applied to the Restart Business Grant, he failed to disclose this information. On July 2, 2020, he was awarded a $25,000 Restart Business Grant. Had Patel disclosed the PPP loan information on the Restart Business Grant application, the grant would have been decreased by $3,750.

“Our office will continue our work with the county to ensure COVID relief assistance is dispersed quickly and effectively, while providing checks and balances to prevent fraud, waste, and abuse. We urge citizens, government workers, contractors, and others to report suspected fraud, waste, abuse, and mismanagement of pandemic relief moneys to ensure these limited resources go to those most in need and who meet the guidelines to receive these funds,” explained Barbara Bellafiore, with the Office of the Inspector General in Palm Beach County.

The report indicates the case information has also been turned over to the States Attorney’s Office.

This lack of disclosure by Mr. Patel resulted in Identified Costs of $3,750, which Kahna should reimburse to the County. We found sufficient information to warrant referring our finding to the State Attorney’s Office and the United States Attorney’s Office.

CARES Act, warrant, disclosure, reimbursement

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