11 hrs ago
Delhi Man’s Ponzi Scheme Cheated Celebrities and Other Investors
Siddharth Jawahar moved from Delhi to the United States as a young man and built a successful-looking investment business.
He became known among celebrities, athletes, and charities.
Prosecutors said he collected more than $35 million from investors but invested only a small part of it.
They said he used money from newer investors to repay older investors, which is called a Ponzi scheme.
He also allegedly spent investor money on luxury travel, hotels, homes, clubs, clothing, and entertainment.
Much of the invested money was placed in one company’s stock, which later lost value.
Jawahar told investors they were making money even when that was not true, prosecutors said.
He pleaded guilty, and a judge sentenced him to 11 years in prison.
He must also repay more than $31 million.
Siddharth Jawahar, 38, was sentenced to 11 years in prison for a multimillion-dollar Ponzi scheme.
Prosecutors said he raised more than $35 million but invested only about $10 million, or 28 percent.
More than 64 people, including NFL player Travis Kelce, were identified as victims.
Jawahar concentrated about 99 percent of client funds in declining Philip Morris Pakistan stock and allegedly misrepresented its performance.
He pleaded guilty to three wire-fraud counts and was ordered to pay $31.35 million in restitution.
- Who
- Siddharth Jawahar, a former investment adviser, and more than 64 investors, including Travis Kelce.
- What
- Jawahar pleaded guilty to wire fraud for operating a Ponzi scheme that raised more than $35 million.
- Where
- The investment business was based in Texas, and the case was heard in a United States district court.
- When
- The funds were raised between July 2016 and December 2023; he was sentenced last Tuesday after pleading guilty in January.
- Why
- Prosecutors said he used new investors’ money to repay earlier investors, misrepresented investments, and spent substantial funds on personal luxuries.
Prosecution and court findings
Sentence mitigation request
Appropriate punishment
Prosecution and court findings
Prosecutors described a deliberate fraud involving false claims about investments, personal spending, and alleged efforts to obstruct the investigation; Jawahar received an 11-year sentence.
Sentence mitigation request
Missouri Congressman Sam Graves asked the judge for a 48-month sentence, saying he was writing in his personal capacity.
Investor losses
Prosecution and court findings
The government said Jawahar raised more than $35 million, invested only about 28 percent, used new investors’ money to repay earlier investors, and owed $31.35 million in restitution.
Sentence mitigation request
The article does not provide a detailed defense response disputing the government’s financial account; Jawahar pleaded guilty to three wire-fraud counts.
Key facts
- Defendant
- Siddharth Jawahar, 38
- Prison sentence
- 11 years
- Money raised
- More than $35 million
- Amount invested
- About $10 million, or 28 percent
- Known victims
- More than 64 investors
- Restitution
- $31.35 million
- Major investment
- Philip Morris Pakistan stock, which eventually represented about 99 percent of client funds
Quotes
US Department of Justice
The federal agency whose court release described Jawahar’s investment conduct
“Investors were also falsely led to believe that he’d invested their money in a specific company or companies but he never made the promised investments.”
indianexpress.com
“In 2015, he began investing client funds in Philip Morris Pakistan (PMP). Eventually, 99% of client funds were consolidated into PMP.”
indianexpress.com
Sources
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