The US market regulator Securities and Exchange Commission (SEc) has barred an Indian-origin person Mohit Khanna, who was allegedly running a Ponzi scheme and defrauded investors, from associating with any broker or dealer in the market.
The regulator, in its complaint, alleged that Khanna, owner and CEO of a wealth management firm, had made false and misleading statements in an unregistered offer and sale of shares of his firm MAK 1 Enterprises from 2003 to August 2009 and promised inflated and gyrated returns.
Khanna, who is the sole shareholder of MAK 1 Enterprises and is said to have raised $70 million from 300 investors though this company, was also barred in 2004 by the Financial Industry Regulatory Authority (FIN RA).
In its order, SEC said that it deemed it "appropriate and in public interest to impose the sanctions... The respondent Khanna be and hereby is barred from association with any broker or dealer".
"Khanna falsely promised inflated and guaranteed returns, misrepresented that the investments were insured, concealed his FINRA bar, misappropriated investor funds, and otherwise engaged in a variety of conduct which operated as a fraud and deceit on investors," the SEC said.
