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Indian-origin investment adviser charged with fraud

Press Trust of India  |  New York 

An Indian-origin has been charged by US federal authorities for orchestrating a fraudulent million dollar investment scheme over several years.

Amrit J S Chahal, 30 of Fairfax, has been charged by the (SEC). The US Attorney's Office for the Eastern District of also announced criminal charges against Chahal. The also charged Chahal.

The SEC's complaint alleges that, from at least February 2015, Chahal used his company, to fraudulently solicit approximately USD 1.4 million from about 50 individuals, including friends and family members.

Chahal is the President, Chief Executive Officer, of Kane Capital. Chahal has never held any securities licenses, nor has he ever been associated with a registered or other than Kane Capital.

According to the complaint, Chahal lured investors by falsely claiming to be an who could generate above-market returns for clients through a low-risk trading strategy.

The SEC alleges that, in reality, Chahal had substantially no experience working in the financial or securities industry or trading securities on behalf of clients. The complaint further alleges Chahal initially invested client funds in a variety of investments, but suffered significant trading losses.

According to the complaint, instead of disclosing the losses, Chahal 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.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, April 17 2018. 10:25 IST