An Indian-origin investment adviser, Amrit J S Chahal, 30, has recently been charged by the US federal authorities for orchestrating a fraudulent million dollar investment scheme over several years. The accused belonged to Fairfax, Virginia and has been charged by the Securities and Exchange Commission (SEC). The US Attorney’s Office for the Eastern District of Virginia also announced criminal charges against Chahal.
According to the SECs complaint the accused has used his company, Kane Capital Investment Group to fraudulently solicit approximately USD 1.4 million from about 50 individuals, including friends and family members. Chahal is the President, Chief Executive Officer, and sole employee of Kane Capital. The Indian-origin investment adviser never held any securities licenses, nor has he ever been associated with a registered broker-dealer or investment adviser other than Kane Capital. According to the complaint, Chahal also enticed the investors by wrongly claiming to be an experienced and successful trader who could generate above-market returns for clients through a low-risk trading strategy. The complaint further alleged that the Indian-origin investment adviser initially invested client funds in a variety of investments, but suffered significant trading losses. The accused, however, never disclosed the losses, and 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.