Washington:

An Indian American has been indicted by a grand jury in a Ponzi scheme, and the FBI urges victims of a Texas investment adviser to come forward.

Siddharth Jawahar, 36, has been ordered jailed until sentencing. The FBI said Wednesday it was looking for potential victims in the Miami area of ​​Jawahar, who is accused of running a multimillion-dollar Ponzi scheme.

According to the indictment, from July 2016 to approximately December 2023, Jawahar received more than $35 million in funding from Swiftarc investors but spent approximately $10 million on investments in the company.

The indictment alleges that Jawahar used funds from new investors to pay off old investors and promote a lavish lifestyle that included flights on private jets, stays at luxury hotels and expensive outings at luxury restaurants.

The indictment alleges that in 2015, Jawahar began investing the majority of client funds in a single investment company, Philip Morris Pakistan (PMP), and eventually, 99% of client funds were consolidated into PMP investments.

Rather than telling investors that PMP’s value had plummeted, Jawahar misled them about the stock price and profits.

The indictment alleges that when the Texas Securities Commission revoked Swiftarc Capital’s authority to conduct investment activities on June 7, 2022 and ordered Jawaha to “cease engaging in fraudulent activities,” Jawaha also failed to tell investors.

The indictment alleges that Jawahar continued to fraudulently solicit and receive investor funds, including $1 million from investors, weeks after the state board’s order.

Each wire fraud charge carries a maximum penalty of 20 years in prison, a $250,000 fine, or both.

Investment adviser fraud charges are punishable by up to five years in prison, a $10,000 fine, or both.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)