SEC Charges Private Fund Advisor and Owner With Fraud

Posted on September 20th, 2022 at 12:01 PM
SEC Charges Private Fund Advisor and Owner With Fraud

From the Desk of Jim Eccleston at Eccleston Law.

The Securities and Exchange Commission (SEC) has charged Ramas Capital Management (RCM) as well as its managing partner and owner, Ganesh Betanabhatla, over alleged misrepresentations and breaches of fiduciary duty to a privately-managed fund and its sole investor.

RCM and Betanabhatla made several misrepresentations and subsequently misused fund assets, according to the SEC’s complaint. The complaint alleged that the defendants falsely informed the sole fund investor that they had previously raised $25 million for the fund and that a well-known energy investor supported the investment and was included in the fund. Further, the defendants improperly informed the sole investor that the Texas-based fund constituted a special purpose vehicle solely designed to invest in a specific portfolio company, according to the SEC.

However, there were no other investors in the fund while the well-known energy investor was not involved, according to the complaint. The SEC further alleged that after receiving the investor’s $1 million, the defendants instead transferred the funds to a different portfolio company related to one of RCM’s earlier private investment funds. The SEC is seeking permanent injunctions, disgorgement, and civil penalties against both defendants.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, sec

Return to Archive

TESTIMONIALS

Previous
Next

Thank you so very much for your guidance, patience, and expertise.

Beth and Steve K.

LATEST NEWS AND ARTICLES

September 16, 2025
Former Morgan Stanley Advisors Win Partial Court Victory in Client Solicitation Dispute

Two former Morgan Stanley advisors in Hackensack, New Jersey have defeated Morgan Stanley’s initial effort to block them from soliciting clients, according to an August 15 order from New Jersey Superior Court.

September 15, 2025
California Young-Gun Investor Charged in Alleged $6 Million Ponzi Scheme

Federal prosecutors have accused Mihir Deepak Sukthankar, a California resident once celebrated as a teenage trading “prodigy,” of orchestrating a multi-million-dollar Ponzi scheme.

September 12, 2025
LPL Broker Fined and Suspended for Recommending Risky Investments to Elderly Client

An LPL Financial broker in Elizabethtown, Kentucky, has agreed to sanctions after FINRA found he violated Regulation Best Interest (Reg BI) when recommending unsuitable investments to an elderly customer.