Pelham, N.H., Man Indicted on Charges That His 'Royal Investments' Was a Ponzi Scheme Promising 12% to 16% Risk-Free Returns

Published Nov. 10, 2026. Case status is current as of that date.

"The Company of Wealth & Trust." That is what federal prosecutors say Kevin Patel called Royal Investments, the company he founded in 2018 and used to raise about $2 million from friends and acquaintances. On Nov. 5, 2026, the U.S. Attorney's Office for the District of New Hampshire announced that Patel, 40, of Pelham, had been indicted on three counts of wire fraud [1].

Important: Patel is charged, not convicted. The U.S. Attorney's Office states that "the details contained in the charging documents are allegations" and that he "is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law" [1].

What the indictment alleges

According to the indictment, as summarized by the U.S. Attorney's Office [1]:

• Patel founded a purported investment company called Royal Investments in 2018 and called it "The Company of Wealth & Trust."
• He solicited approximately $2 million in investments from friends and acquaintances, telling them he would invest their money in the stock market.
• He guaranteed "risk-free" annual returns of 12% to 16% per year.
• Prosecutors allege Royal Investments "was a Ponzi scheme." The indictment says Patel did not invest the funds and instead spent them on personal expenses and payments to family members.
• He allegedly repaid earlier investors with new investors' money. When new investors stopped coming in, he ran out of money to repay earlier ones, "causing them several hundred thousand dollars in losses."

The release does not name any investor, and neither do we. It does not give a case number or a date for Patel's first court appearance; it says only that he "will appear in federal court at a later date" [1].

The person charged and his status

Kevin Patel, 40, Pelham, N.H. Indicted on three counts of wire fraud in the U.S. District Court for the District of New Hampshire (announced Nov. 5, 2026). He has not been convicted. Each wire fraud count carries a maximum of 20 years in prison, up to 3 years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss [1]. Those are statutory maximums, not a prediction of any sentence.

The FBI is leading the investigation, with help from the New Hampshire Secretary of State's office. Assistant U.S. Attorney Alexander S. Chen is prosecuting [1].

We found no public statement from Patel or a defense lawyer. If one becomes available we will add it.

Why "risk-free" is the warning

Two details in the indictment are classic Ponzi markers, whoever is behind a pitch:

1. A guaranteed return with no risk. Real stock-market investments go up and down. Nobody can promise 12% to 16% a year, every year, with no chance of loss. A "risk-free" double-digit promise is the single strongest warning sign regulators list.
2. Money from people you know. Schemes that spread through friends, family, co-workers or a community group (often called affinity fraud) work because people trust the person asking and skip the checks they would run on a stranger.

In a Ponzi scheme, early investors are often paid on time, which makes the pitch look proven. Those payments come from later investors' money. When new money slows, the payments stop, which is the pattern the indictment describes here.

Red flags

These are general warning signs, not claims about any person beyond what the charging documents allege.

• Guaranteed or "risk-free" returns, especially above what a bank or bond fund pays.
• A company name and slogan that stress trust ("wealth," "trust," "royal") but no registration with the SEC, FINRA or your state securities regulator.
• No independent custodian. You send money to the promoter or his company rather than to a brokerage firm that holds the account in your name.
• Statements that only come from the promoter, with no way to see the account yourself.
• Pressure to reinvest or to recruit friends, and vague answers when you ask to withdraw.

What to do if you're targeted

• Check registration first. Look up the person and firm on FINRA BrokerCheck (brokercheck.finra.org) and the SEC's Investment Adviser Public Disclosure site (adviserinfo.sec.gov). In New Hampshire, the Bureau of Securities Regulation in the Secretary of State's office handles registrations and complaints.
• Ask who holds the money. A legitimate adviser uses a third-party custodian, and you should be able to log in to that custodian yourself.
• Ask for documents in writing (offering documents, audited statements) and have someone independent review them.
• If you think you invested in a Ponzi scheme, stop sending money, keep every record, and report it to the FBI at tips.fbi.gov or ic3.gov, to the SEC at sec.gov/tcr, and to your state securities regulator.
• Be wary of "recovery" offers. People who lose money in a scheme are often targeted again by fake recovery services that charge upfront fees.

Case status (as of Nov. 10, 2026)

Defendant	Court	Status	Source
Kevin Patel, 40, Pelham, N.H. (founder of Royal Investments, per the indictment)	U.S. District Court, District of New Hampshire	Indicted on three counts of wire fraud (announced Nov. 5, 2026); not convicted; presumed innocent; first appearance "at a later date"	[1]

Statuses can change. The release does not give a case number or court date.

Sources

1. U.S. Attorney's Office, District of New Hampshire, "Pelham Man Indicted for Running a Ponzi Scheme, Defrauding Investors," Nov. 5, 2026. https://www.justice.gov/usao-nh/pr/pelham-man-indicted-running-ponzi-scheme-defrauding-investors

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Corrections and updates: If you are named in this article, or represent someone who is, and believe anything here is inaccurate or out of date (including a dismissal, acquittal, or change in case status), please contact us at editorandchief@scammers.com. We will review it and update the article promptly.