Sheth Family Faces $100M Ponzi Lawsuit | Philadelphia News

A father-son duo, Pankaj and Rajan Sheth, face federal charges for allegedly orchestrating a $100 million Ponzi scheme over three decades, using rundown hotels—including the notoriously poorly reviewed Penrose Hotel in South Philly—as collateral for fraudulent government-backed loans. The DOJ claims they funneled funds to pay off old debts and enrich themselves, exploiting even COVID-19 relief money, while spinning up shell companies to keep control of properties through legal delays. Rajan denies all allegations, calling their work legitimate distressed-property revitalization and asserting all loans have been repaid; the family vows to fight back, citing recent renovations as proof of good faith. The Justice Department seeks full restitution, with the Penrose Hotel still under one of the defendants’ entities despite multiple ownership changes. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/99c7919ad6da8285