Texas Investment Adviser Sentenced to 11 Years for $35 Million Ponzi Scheme
From the desk of Jim Eccleston at Eccleston Law
A federal judge has sentenced Siddharth Jawahar, who operated Texas-based investment adviser Swiftarc Capital, to 11 years in prison for running a $35 million Ponzi scheme.
U.S. District Judge Zachary M. Bluestone also ordered Jawahar to pay $31.35 million in restitution to victims. According to Wealth Management, published reports identified Kansas City Chiefs tight end Travis Kelce as one of the investors who lost money in the scheme.
Jawahar began placing client funds in Philip Morris Pakistan in 2015 and eventually concentrated approximately 99 percent of client assets in the overseas company. When the stock's trading price fell sharply, Jawahar did not disclose the losses. Instead, prosecutors said he continued telling investors that their investments were profitable.
Between July 2016 and December 2023, Jawahar raised more than $35 million from investors but invested only about $10 million. He used much of the remaining money to repay earlier investors and finance personal expenses.
Wealth Management reports that Jawahar spent investor funds on private jet travel, luxury hotels, apartments in Austin and New York City, private club memberships, clothing and expensive restaurants.
Prosecutors also accused Jawahar of obstructing the investigation. The Justice Department said he coached a victim to provide a favorable statement to the FBI, made false statements about his immigration status and finances, and attempted to have his sister conceal evidence, Wealth Management reports.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
Tags: eccleston, eccleston law, ponzi scheme, securities fraud, investment fraud, white collar crime, investment adviser
