SEC Charges Virginia Investment Adviser with Alleged $1.4 Million Fraud
The Securities and Exchange Commission has charged an investment adviser with orchestrating an investment scheme over several years.
The Securities and Exchange Commission has charged an investment adviser with orchestrating an investment scheme over the course of several years.
The SEC’s complaint alleges that Amrit J. S. Chahal of Fairfax, Virginia used his company, Kane Capital Investment Group LLC, to fraudulently solicit approximately $1.4 million from about 50 individuals, including friends and family members.
According to the complaint, from at least February 2015, 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 SEC alleges that, in reality, Chahal had substantially no experience working in the financial or securities industry or trading securities on behalf of clients. The complaint further alleges that he initially invested client funds in a variety of investments but suffered significant trading losses.
Instead of disclosing the losses, the SEC claims that Chahal lied to his clients about their investment returns, continued raising funds, then used the money for his personal benefit, including to pay for his luxury car, rent, travel, dining, and other living expenses, and to make Ponzi-like payments to earlier investors.
The SEC’s complaint, filed in federal court, charges Chahal with various securities law violations and seeks a permanent injunction, disgorgement, and penalties. The Commodities Futures Trading Commission also charged Chahal, while the U.S. Attorney’s Office for the Eastern District of Virginia announced criminal charges.
