Hotel Owners Charged with Defrauding State of Over $470K

Three hotel owners were caught up in a sweep of Hotel Operators’ Occupation Tax Act violations, and prosecutors believe they defrauded the state of more than $470,000 from eight hotels.

Shashank Bhatt, 66 of Oak Brook and Kishore Chugh, 63 of Burr Ridge, are accused of conspiring to defraud the state by underreporting about $3.5 million revenue, according to attorney general Lisa Madigan’s office.

Prosecutors say Bhatt and Chugh allegedly defrauded the state out of $354,076.84 in tax revenue.

They are charged with filing a fraudulent HOOT return and wire fraud, which are class 3 felonies that carry up to two to five years prison time, the attorney general’s office reported.

Bhatt and Chugh are the owners and operators of hotels around Chicago, including the D-Lux Budget Motel in Alsip, the Miami Inn & Suites in Oak Lawn, the Palos Motel in Worth, the Presidential Inn in Matteson, the Presidential Motel in Lyons and the Saratoga Motel in Chicago.

Bond for Bhatt and Chugh was set at $100,000 each. Their next court date is scheduled for Jan. 11.

Jagdishchandra Parikh, 59 of DeKalb, is also charged with failing to file HOOT returns, a class 3 felony.

Prosecutors say Parikh allegedly failed to disclose more than $2 million in sales that came from two Baymont Inn & Suites hotels in DeKalb and Ogle counties. The resulting state tax revenue loss is about $120,000, the attorney general’s office reported.

Parikh’s next court appearance is set for Jan. 12.

“We will continue to pursue individuals who defraud the state by violating tax laws and keep money that is owed to the state,” Madigan said in a statement.

IDOR’s Criminal Investigations Division investigated these cases. Assistant attorneys general Christina Chojnacki and Mary Claire Lusher are handling the cases for Madigan’s Special Prosecutions Bureau.