A Virginia district court has entered a final judgment against Fairfax, Virginia resident Amrit J. S. Chahal, who was charged last year by the SEC with perpetrating a fraudulent investment scheme.
The SEC’s complaint alleged that Chahal used his company, Kane Capital Investment Group LLC, to fraudulently solicit approximately $1.4 million from about 50 individuals, including friends and family members.
The complaint further alleged that Chahal initially invested client funds in a variety of investments but suffered significant trading losses. Instead of disclosing the losses, Chahal allegedly 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.
Chahal was also charged criminally by the U.S. Attorney’s Office for the Eastern District of Virginia and civilly by the Commodities Futures Trading Commission.
In the criminal case, Chahal pleaded guilty to charges of orchestrating a multi-year investment fraud scheme and was sentenced to a prison term of 30 months followed by three years of supervised release. He was ordered to pay forfeiture of $1.2 million and restitution of $445,633.
Chahal settled the charges brought against him by the CFTC, consenting to permanent injunctions and restitution of $1.2 million, which was deemed satisfied by the forfeiture order against him in the criminal case.
The final judgment permanently enjoins him from violating the antifraud provisions of federal securities laws and orders him to pay disgorgement of $1.2 million, which is deemed satisfied by the forfeiture order against him in the criminal case.
The SEC also barred Chahal from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization.