A 36-year-old Indian-American investment adviser, Siddharth Jawahar, has been indicted by a grand jury in the United States for his alleged involvement in orchestrating a complex Ponzi scheme, which amassed millions of dollars from investors.
Operating out of Texas with his firm Swiftarc Ventures, Jawahar purportedly collected over $35 million from investors between July 2016 and December 2023. However, only a fraction of these funds, approximately $10 million, was actually allocated towards investments in companies, as revealed by the indictment issued by the US Attorney’s Office in Missouri.
Rather than fulfilling promised investments, Jawahar is accused of utilizing incoming funds from new investors to repay earlier investors, all the while sustaining a luxurious lifestyle for himself. This lifestyle allegedly encompassed private jet flights, lavish hotel accommodations, and extravagant dining experiences at upscale restaurants.
The indictment further unveils Jawahar's deceptive practices, notably concentrating a significant portion of client funds into a single investment, Philip Morris Pakistan (PMP), beginning in 2015. Alarmingly, nearly all client funds, amounting to 99%, were directed into this investment, with Jawahar purportedly concealing the substantial decline in PMP's value from investors.
Moreover, Jawahar is accused of misleading investors regarding the share price and profits associated with their investments, perpetuating the facade of financial success while allegedly defrauding unsuspecting individuals.
Despite facing regulatory scrutiny, including the revocation of Swiftarc Capital's authorization for investment by the Texas State Securities Board in June 2022, Jawahar allegedly continued to solicit and receive investor funds under fraudulent pretenses. In one egregious instance, he reportedly secured $1 million from an investor mere weeks after the state board's directive to cease fraudulent activities.
The seriousness of these allegations is underscored by the potential legal ramifications, with wire fraud charges carrying a maximum penalty of 20 years in prison and a $250,000 fine, while investment adviser fraud charges may result in a sentence of up to five years in prison and a $10,000 fine, as per the US legal system.
