Bhatia

BACKGROUND

In 2004, Bhatia was one of several defendants sued in fed- eral court in Texas. The plaintiff was an entity named Inderra Houston, L.P. (“Inderra”), which was formed to build a real estate project in Houston, Texas. Its principals, Ralph Aber- cia, Sr. and Ralph Abercia, Jr., sought sources of financing for the project and eventually met with representatives of Wolfe & Turner and Sherwin & Noble, including Bhatia. Bhatia was in charge of both entities, and represented that Sherwin & Noble could fund a $105 million loan upon Inderra’s payment of a $1.575 million loan commitment fee. Although the Aber- cias agreed, and paid the fee, Inderra never received the loan proceeds. It then filed suit against Bhatia and eight other defendants for fraud, negligence, and breach of fiduciary duty. In the midst of discovery, Inderra filed a motion for vol- untary dismissal of the action. The court eventually dismissed Bhatia and his co-defendants with prejudice.

While the civil proceeding was pending, the government filed a criminal complaint against Bhatia and three other indi- viduals allegedly involved in the Inderra transaction. They were ultimately indicted in federal court in…