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Chatwal Hotelier in Trouble Again (But It's Not Vikram)

April 18, 2014 at 12:05 PM | by | Comments (0)

Usually when we hear of a Chatwal hotelier in the news, it's often about Vikram Chatwal, the troubled hotelier behind The Dream Hotel brand. But today, it's Vikram's father who's in the news. And it's pretty serious.

The Daily News reports that Sant Singh Chatwal, the chairman of Hampshire Hotels & Resorts which includes his namesake, The Chatwal Hotel, pleaded guilty to "recruiting straw donors to make illegal campaign contributions to three federal candidates." He also pleaded guilty to tampering with a witness who he allegedly told to lie to the FBI and the IRS.

Chatwal stepped down as CEO of Hampshire Hotels earlier this month (probably because of the charges) but remains on as chairman. Eric Danziger, formerly CEO of Wyndham Hotel Group, took Chatwal's place. Wyndham franchises the Dream and Night hotels which were started by Chatwal.

Meanwhile, Chatwal faces up to five years in prison and a fine of $200,000 when he's sentenced on July 31. He also offered to pay the U.S. government $1 million in restitution.

This is not the first time Chatwal has been in trouble with the government. Back in 2012, it was discovered that The Chatwal Hotel pretended to be a church for several years to avoid paying taxes. (It's a long story but the hotel was previously a church and the hotel never changed that status.) Let's hope this is the last of the Chatwal crimes.

[Photo of Chatwal and Danziger via Rediff]

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