Nov. 13–A federal court in Chicago has named a receiver to take over control, and to liquidate, the assets of Florida businessman Nikesh Patel, including the unopened Crowne Plaza hotel in Saddle Brook.

Patel, who was arrested on charges of loan fraud just over a month ago, has agreed to cooperate with Michael Nanosky, who was appointed as receiver. Nanosky, president and chief executive officer of Boca Raton, Fla.-based Janus Hotels & Resorts, will take over management of the Alena Hospitality portfolio ? the five hotels Patel owns, which include the former Holiday Inn off Route 80.

Nanosky will market and sell those properties, as well as Patel’s other business and personal assets. Those include a Lamborghini Gallardo, a Rolls-Royce Wraith, a Mercedes-Benz SLK Roadster, a Cadillac Escalade, a Ski Nautique power boat, high-end jewelry and watches, and gold coins and a gold bar, according to court documents.

Janus Hotels has served as a court-appointed receiver in more than 50 cases, and the company owns or manages more than 50 hotels, including New Jersey properties at Newark Liberty International Airport and Egg Harbor Township in Atlantic County.

The 148-room former Holiday Inn in Saddle Brook, known for its distinctive cylindrical shape, had been scheduled to reopen as a Crowne Plaza last month after undergoing extensive renovations. Patel, an Orlando resident, bought the leasehold for the 12-story property at 50 Kenny Place for $1.6 million in July 2013 and had promised to make $10 million in im

provements. Nearly all that work was done, but completing the final touches was scotched when Patel got into legal trouble.

The 30-year-old entrepreneur was charged Sept. 30 with federal loan fraud. He is free on bail and his attorney, Mark NeJame, has maintained his client’s innocence. Patel was later sued for $72.8 million by Pennant Management Inc. of Milwaukee.

Authorities allege that one of Patel’s companies, First Farmers Financial LLC, sold $150 million of loans that it falsely claimed were backed by the U.S. Department of Agriculture. Pennant Management filed suit against Patel and his companies, claiming it was defrauded when it bought some of those loans.

Patel agreed to sell many of his assets, including his hotels, and turn over the proceeds to Pennant Management to help settle its claims against him.

Pennant Management recently asked, with Patel consenting, the U.S. District Court for the Northern District of Illinois to name a receiver for those assets. The judge agreed, and the order was filed Monday in Chicago.

In addition to Saddle Brook, Patel owns three hotels in Florida and one in Peoria, Ill. Only one, a DoubleTree hotel in Orlando, is open.

“Unless a receiver is appointed … to manage the one operating hotel and oversee the remaining four properties, the value of the Alena Hospitality Portfolio [defendants’ most substantial assets] will be placed at risk,” according to court filings.

Pennant Management’s attorney, Paul Fox, and Nanosky could not be reached for comment Wednesday.

The receiver will have to |tally the inventory of all of Patel’s properties for the court, as well |as “take all necessary and proper steps to market and sell the |assets,” according to court documents.

Florida-based Continental Properties Acquisitions Corp. made an offer to buy all of Patel’s hotels after renovation work on them was done, but Pennant Management asked Continental Properties to come back with an offer without the completion of improvements.

Continental could not be reached for comment.

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