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FBI widens probe into alleged Ponzi scheme
Jawahar allegedly amassed over US$35 million from Swiftarc investors between July 2016 and December 2023
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FBI widens probe into alleged Ponzi scheme / Pexels
In an ongoing investigation, authorities are calling on potential victims to come forward as the FBI delves into a widening Ponzi scheme allegedly orchestrated by investment adviser Siddharth Jawahar. The probe, which initially centered in St. Louis, has now broadened to include the Miami area.
Jawahar, 36, was indicted by a grand jury in U.S. District Court in St. Louis on Dec. 21, 2023, facing charges of wire fraud and investment adviser fraud. During a detention hearing on Feb. 16, Assistant U.S. Attorney Derek Wiseman revealed that victims have been identified in multiple cities including Miami, St. Louis, Kansas City, Los Angeles, Cleveland, New York, San Francisco, and Austin. A judge subsequently ordered Jawahar to remain in custody until trial.
Individuals who invested with Jawahar or his Texas-based investment firm, Swiftarc Capital LLC, are urged to contact the FBI St. Louis Division at 314-589-2500.
According to the indictment, Jawahar allegedly amassed over US$35 million from Swiftarc investors between July 2016 and December 2023. However, instead of investing the funds as promised, he allegedly spent around US$10 million on personal expenses, including private flights, luxury accommodations, and extravagant dining.
The indictment further alleges that Jawahar heavily invested client funds in a single venture, Philip Morris Pakistan (PMP), without disclosing the substantial decline in the investment's value to investors. Despite being ordered by the Texas State Securities Board to halt fraudulent activities in June 2022, Jawahar purportedly continued to solicit and receive funds from investors, even after the board's intervention.
If convicted, Jawahar could face severe penalties, with each wire fraud charge carrying a maximum sentence of 20 years in prison and a US$250,000 fine, while the investment adviser fraud charge carries a maximum sentence of five years in prison and a US$10,000 fine.
It's important to note that charges detailed in the indictment are allegations and do not equate to proof of guilt. Jawahar, like any defendant, is presumed innocent until proven otherwise.
The case has been investigated jointly by the FBI and the Manhattan District Attorney’s Office, with prosecution led by Assistant U.S. Attorney Derek Wiseman.
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