Securities and Exchange Commission Charges NRI Amrit J. S. Chahal Investment Adviser with $1.4 million Ponzi scheme/ Fraud
The Securities and Exchange Commission has charged an investment adviser with orchestrating an investment scheme over several years and misappropriated funds entrusted to them by using new deposits to make Ponzi scheme-like payments to certain pool participants.
The SEC's complaint alleges that, from at least February 2015, Amrit J. S. Chahal, of Fairfax, Va., used his company, Kane Capital Investment Group, LLC, to fraudulently solicit approximately $1.4 million from about 50 individuals, including friends and family members.
In reality, Amrit Chahal had substantially no experience working in the financial or securities industry or trading securities on behalf of clients. The complaint further alleges Chahal initially invested client funds in a variety of investments, but suffered significant trading losses.
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.
The trading activity was overall unprofitable, causing deep losses that the defendants allegedly attempted to hide by making false and misleading statements to customers. The CFTC's complaint says the defendants boasted of annual averaged trading profits of between 28% and 34%, and sometimes higher, despite knowing at the time that Kane Capital made no profits and was suffering losses.
The Complaint also alleges that Defendants misappropriated pool participants’ funds to pay Chahal’s personal expenses, including his rent, utility, and credit card bills. In so doing, Defendants commingled Kane Capital’s funds with Chahal’s own personal funds.
The U.S. Attorney's Office for the Eastern District of Virginia also announced criminal charges against Chahal.
The Commodities Futures Trading Commission also charged Chahal.
The Complaint also charges Chahal with failing to register with the CFTC as a Commodity Pool Operator, as required.
Chahal is subject to a nine-count criminal indictment in a related action brought by the United States Attorney’s Office for the Eastern District of Virginia. Among other charges, Chahal has been indicted on four counts of commodities fraud.
To him, you seem sharp and able to recognize a gold mine when you see it. He only offers this tip to his closest friends, but he's willing to make an exception for you. He says if you get in on this opportunity now, you'll be an early investor in the next big thing. The Ponzi scheme is just one type of con.
Borrowing from SINGH to pay PATEL is a scheme made famous by Charles Ponzi. Who was this crook whose name graces this scam?
- Ponzi scheme criminals spend an average of 30 days in prison per $1M stolen, robbers spend an average of 20-30 years per $1M
- Banks get to rip you off for millions and even billions of dollars, the best bit is no one ever goes to jail! do rip off america for $100 million pay a small fine, don't go to jail, and the best bit is you get to keep the business and do it all again next year