Indian-origin man charged with $250,000 in ponzi scheme in US

25 March 2018, 03:01 PM
Indian-origin man charged with $250,000 in ponzi scheme in US (Image Source: PTI)
Indian-origin man charged with $250,000 in ponzi scheme in US (Image Source: PTI)

An Indian-origin man has been charged for stealing an amount more than $250,000 in a Ponzi scheme in which his friends and coworkers invested.

Niket Shah, residing in New Jersey got his assets freezed after being charged by the Securities and Exchange Commision. Shah used Spark Trading Group to defraud around 15 investors into investing hundreds of thousands of dollars on his schemes, according to the SEC’s complaint.

Niket Shah lied about his success as a trader to the investors for funds and altered financial statements to show profits when they were losing money.

The complaint alleges that Niket Shah promised about monthly returns and guaranteed against losses on the invested amounts and lied when investors asked for their money. He allegedly lied that money had been frozen by government agencies, including the commission.

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"Fraudsters who swindle their friends and colleagues using doctored financial statements and outright lies should expect the Commission and its staff to act swiftly and decisively, as we have here today," Associate Director of the SEC's Enforcement Division Melissa Hodgman said.

Spark Trading and Niket Shah has been charged according to the SEC’s complaint with violations of the antifraud provisions of the federal securities laws. The SEC is looking for returns with interests and civil money penalties.

(With inputs from agencies)

First Published: Sunday, March 25, 2018 02:49 PM
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