SEC Halt $130 M Fraud Fund Targeting Indian American Community

October 17, 2023 20:13
SEC Halt $130 M Fraud Fund Targeting Indian American Community

(Image source from: IANS)

SEC Halt $130 M Fraud Fund Targeting Indian American Community:- The Securities and Exchange Commission (SEC) has decided to temporarily restrain Nanban Ventures LLC. Their accounts have been frozen along with accounts and the government has taken more emergency measures to thwart an ongoing fraudulent scheme targeting the Indian American community.

Gopala Krishnan (also known as GK), Manivannan Shanmugam and Sakthivel Palani Gounder along with three others are the founders. The company has reportedly collected the sum of $130 M in funds since April 2021. All three founders and three entities are alleged to be involved in the fraud, said the SEC in their press statement.

SEC raised a complaint unsealed in the US District Court for the Eastern District of Texas alleging that the defendants raised $89 M from more than 350 investors. The founders have managed these through capital funds through Nanban Ventures LLC. They also raised $39 M from 10 other investors.

There is also an addition to the complaints that the founders have paid $17.8 M to the investors claiming profits, which are actually from Ponzi payments.

They also used YouTube for their promotions. Krishanan in his video misrepresented public, claiming that he achieved more than 100 percent returns through venture capital.

Besides this, the SEC has requested all the investors to confirm their credentials.

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