US SEC charges Indian-origin investment adviser with $1.4mn fraud
(Sourced from PTI)
An Indian-origin investment adviser, Amrit JS Chahal (30) of Fairfax, Virginia has been charged by the United States' Securities and Exchange Commission (SEC) for fraudulently soliciting approximately $1.4mn from about 50 individuals, including friends and family members. The US Attorney's Office for the Eastern District of Virginia also announced criminal charges against Chahal. The Commodities Futures Trading Commission also charged Chahal. Here's more.
The SEC's complaint alleged that Chahal used his company Kane Capital Investment Group to cheat people from at least February 2015. Chahal is the President, Chief Executive Officer, and the sole employee of Kane Capital. Chahal has never held any securities licenses, nor has he ever been associated with a registered broker-dealer or investment adviser other than Kane Capital.
The complaint said Chahal lured investors by falsely claiming to be an experienced and successful trader who could generate above-market returns for clients through a low-risk trading strategy. In reality, Chahal had substantially no experience working in financial or trading securities on behalf of clients. The complaint further alleged Chahal initially invested client funds in a variety of investments but suffered significant trading losses.
According to the complaint, instead of disclosing the losses, Chahal lied to his clients about their investment returns, continued raising funds, then used the money for his personal benefit and to make Ponzi-like payments to earlier investors.