By: Tracie Carter
Two Absecon men have admitted to conspiring to defraud the Internal Revenue Service by filing false tax returns that concealed cash payroll at their Atlantic City motels, federal authorities announced.
Dhruvesh Patel, 37, and Mayank Ray, 36, both of Absecon, pleaded guilty before U.S. District Judge Christine P. O’Hearn to separate informations charging each with one count of conspiracy to defraud the IRS, according to Senior Counsel Philip Lamparello.
Court records and statements made during the proceedings show that Patel and Ray operated two motels in Atlantic City that generated substantial revenue from customers who paid in cash.
As part of the scheme, the defendants used a significant portion of that cash to pay employees off the books, while also retaining some of the money for personal use.
Prosecutors said Patel and Ray caused false employment tax returns to be prepared and filed with the IRS to conceal the cash wages paid to employees.
They also filed false individual income tax returns that underreported income earned from the motels.
Patel admitted that the conspiracy and his related conduct resulted in a tax loss exceeding $250,000. Ray acknowledged that his role in the conspiracy caused an approximate loss of $129,512.
Each conspiracy charge carries a maximum potential sentence of five years in federal prison and a fine of up to $250,000. Sentencing for both defendants is scheduled for May 11, 2026.