Siddharth Jawahar ran a Texas-based investment company called Swiftarc Capital LLC. Representational image: Wikimedia Commons
US: Indian-American Siddharth Jawahar indicted in a $35m Ponzi scheme
Jawahar, 36, indicted on three counts of wire fraud and one count of investment adviser fraud, has been ordered imprisonment until sentencing by the court
An Indian-American has been indicted by a grand jury in a Ponzi scheme with the FBI urging victims of the investment adviser in Texas to come forward.
Siddharth Jawahar, 36, has been ordered imprisonment until sentencing by the court. He was indicted on three counts of wire fraud and one count of investment adviser fraud.
The FBI on Wednesday (March 13) said it is seeking potential Miami-area victims of Jawahar who has been accused of running a multimillion-dollar Ponzi scheme.
Extravagant lifestyle
Jawahar ran a Texas-based investment company called Swiftarc Capital LLC. According to the indictment, from July 2016 through roughly December 2023, Jawahar took in more than USD 35 million from Swiftarc investors but spent about USD 10 million on investments in companies.
Jawahar used the money from new investors to repay older investors and to fuel an extravagant lifestyle that included flights on private planes, stays at luxury hotels, and expensive outings at lavish restaurants, the indictment says.
Majority of funds in single investment
In 2015, Jawahar began investing the majority of client funds in a single investment, Philip Morris Pakistan (PMP), the indictment says, and eventually, 99 per cent of client funds were consolidated into the PMP investment. Jawahar did not tell investors of a dramatic decline in the value of PMP, instead misled investors about the share price and their profits.
The indictment says Jawahar also did not tell investors when the Texas State Securities Board revoked Swiftarc Capital’s authority to conduct investment activities on June 7, 2022, and ordered Jawahar to “cease from engaging in fraud”.
Jawahar continued to fraudulently solicit and receive investor funds, including USD 1 million from an investor weeks after the state board’s order, the indictment says.
Charges punishable by 5-20 years in prison
The wire fraud charges are each punishable by up to 20 years in prison and a USD 250,000 fine, or both. The investment adviser fraud charge is punishable by up to five years in prison and a USD 10,000 fine, or both.
Charges set forth in an indictment, however, are accusations and do not constitute proof of guilt.
(With agency inputs)
