On Thursday, March 7, 2024, the Illinois Attorney Registration and Disciplinary Commission filed a complaint against attorney Ashmit S. Patel. The complaint alleges that Patel engaged in misconduct related to his conviction of conspiracy to commit securities fraud and manipulative trading.
The case is entitled “In the Matter of Ashmit S. Patel,” with case no. 2024PR00015.
The charges cited Illinois Rules of Professional Conduct 8.4(b) and 8.4(c) which states:
Committing a criminal act that reflects adversely on his honesty, trustworthiness, or fitness as a lawyer in other respects.
Conduct involving dishonesty, fraud, deceit, or misrepresentation.
According to the complaint, Patel conspired with others between 2014 and 2017 to conduct an illegal “pump and dump” scheme involving VMS Rehab Systems, Inc. The complaint states that Patel agreed to acquire millions of shares of VMS stock in exchange for legal services. He also allegedly made misrepresentations to deposit and trade the shares through his brokerage account. Other individuals involved reportedly engaged in manipulative trading to create the false appearance of stock demand and activity.
As part of the scheme, the group issued promotional press releases about VMS and its stock to artificially inflate the share price. Once inflated, the complaint claims Patel sold his VMS stock shares into the open market at inflated prices. He then transferred a portion of the proceeds to other individuals involved.
In 2020, a federal grand jury indicted Patel on charges of conspiracy to commit securities fraud and manipulative trading. Patel later pled guilty to one count of the indictment. In January 2024, a federal judge convicted Patel and sentenced him to three years probation along with restitution payments.
The disciplinary complaint alleges Patel’s conduct violated Illinois rules regarding committing a criminal act reflecting adversely on his fitness as a lawyer and engaging in fraud or deceit.
The complaint states:
“WHEREFORE, the Administrator requests that this matter be assigned to a panel of the Hearing Board, that a hearing be held pursuant to Supreme Court Rule 761, and that the panel make findings of fact, conclusions of fact and law, and a recommendation for such discipline as is warranted.”
According to avvo.com, Mr. Patel is a financial markets and services attorney. He attended the University of North Dakota School of Law, graduating in 2010. He acquired his law license in Illinois in 2012.
A copy of the original filing can be found here.
