2 South Jersey Motel Owners Filed Fake Tax Returns, Feds Say

ABSECON, NJ — Two Absecon men who owned two Atlantic City motels admitted to filing fake tax returns to hide cash wages paid and underreporting income, according to the U.S. Attorney's Office District of New Jersey.

Dhruvesh Patel, 37, and Mayank Ray, 36, pleaded guilty to one count each of conspiring to defraud the IRS.

The motels generated substantial gross receipts from customers who paid for their motel rooms in cash, authorities said. Patel and Ray used a large portion of the cash to pay employees in cash and kept some of the resulting cash for personal use.

The duo filed with the IRS false employment tax returns that hid the cash wages and false individual income tax returns that underreported the income they earned from the motels. Patel admitted that the conspiracy and his relevant conduct caused a loss greater than $250,000, and Ray admitted that the conspiracy and his relevant conduct caused a loss of approximately $129,512, authorities said.

The count of conspiracy carries a maximum penalty of 5 years in prison and a fine of up to $250,000. Sentencing for both Patel and Ray are scheduled for May 11, 2026.