Businessman Sentenced to Prison for Investment Fraud Scheme
ALEXANDRIA, Va. – A local businessman was sentenced today to 2 1/2 years in prison for orchestrating a $1.3 million Ponzi scheme that caused losses to more than 40 victims.
According to court documents, Amrit Jaswant Singh Chahal, 31, of Fairfax, operated an investment fraud scheme through The Kane Capital Investment Group, LLC (Kane Capital), a company he established and operated. Chahal held out Kane Capital as a private capital investment group that sought to earn profits and investment returns on behalf of its clients by purchasing, trading, or otherwise investing in commodities for future delivery and other financial instruments. Chahal executed this fraud through falsely representing that Kane Capital had earned returns of roughly 28 to 34 percent annually, when in fact, Chahal had suffered substantial losses in managing investors’ funds. Chahal also created falsified brokerage statements to conceal the losses he had sustained and siphoned off some of his investors’ funds by transferring the money to accounts he controlled or by spending the funds on personal items. When investors asked for returns on their investment, Chahal frequently used money from newer investors to pay disbursements to older investors, without disclosing this fact to his investors. In addition, Chahal opened an unauthorized bank account in the name of one of his investors to further divert funds to his personal use.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Matthew Burke and Jamar K. Walker prosecuted the case.
The Virginia State Corporation Commission provided significant assistance with this investigation.
Read more: https://www.justice.gov/usao-edva/pr/businessman-sentenced-prison-investment-fraud-scheme