- Siddharth Jawahar sentenced to 11 years for Ponzi scheme.
- Defrauded 64 investors, including NFL star Travis Kelce.
- Ordered to pay USD 31.35 million in restitution for fraud.
An Indian-origin man running a Texas-based investment company has been sentenced to 11 years in prison for pulling off a massive, years-long Ponzi scheme. The man identified as Siddharth Jawahar duped dozens of investors, including NFL star and husband of singer Taylor Swift, Travis Kelce out of tens of millions of dollars to fund a lavish lifestyle while falsely promising sky-high returns.
Who Is Siddharth Jawahar?
According to statements by the US Department of Justice, Jawahar, 38, ran a Texas-based investment firm called Swiftarc Capital LLC, serving as its co-founder and managing partner. Court records state he has been living illegally in the United States since 2005. The press release mentions him as an “illegal immigrant.”
While carrying out a fraudulent scheme, Jawahar operated dozens of connected business entities, including Swiftarc Fund LP, Swiftarc Holdings, SJ Investment Holdings LLC, and Swiftarc Telehealth Labs Fund LP, among others. Jawahar's scheme cheated 64 investors across Missouri and other states, including Kelce.
US District Judge Zachary M Bluestone sentenced Jawahar to 11 years in prison and ordered him to pay USD 31.35 million in restitution on Tuesday. The judge highlighted the length of the fraud, the "enormous" financial losses, Jawahar's failure to repay any money, and how he "weaponised" the trust of his investors.
Ponzi Scheme
Starting in 2015, Jawahar began putting client money into a single company, Philip Morris Pakistan (PMP), eventually concentrating 99 per cent of all client funds there. When PMP's value dropped, he hid the losses and lied to investors, claiming their money was generating profits. He also tricked clients into believing he was investing in specific target companies when he never actually made the investments.
Used Money To Fund Lavish Lifestyle
Between July 2016 and December 2023, he took in over USD 35 million from investors but only invested roughly USD 10 million. He used funds from new investors to pay off older ones. Reports stated that instead of investing the funds properly, Jawahar used millions to finance a grand personal lifestyle. His spending included private jet travel and stays at luxury hotels, high-end apartments in New York City and Austin, memberships at exclusive private clubs nationwide, expensive restaurant outings and clothing sprees.
After being indicted, Jawahar tried to obstruct justice by asking a victim to lie to the FBI, lying about his own finances and illegal immigration status, and asking his sister to remotely wipe off his iPhone to destroy evidence. In January, he pleaded guilty in US District Court in St Louis to three counts of wire fraud.
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