Swiftarc Capital & Siddharth Jawahar Accused of Fraud
June 2022- Austin, TX
On June 7, 2022, the Texas State Securities Board (TSSB) entered an order revoking the registration of Swiftarc Capital, LLC, and ordered that Swiftarc and its managing director, Siddharth Jawahar, immediately cease and desist from engaging in fraud.
According to the TSSB order, in 2010, Jawahar and others created a pooled investment vehicle, the Swiftarc Fund, L.P., which was intended to invest in equity securities, debt and options of U.S. and foreign issuers, with no more than 12% of the Fund’s capital invested in a single security.
By 2015, the TSSB alleges, the fund invested 54% of its capital in one security, Phillip Morris Pakistan (PMP). By 2019 99$ of the Fund was invested in PMP. By 4/2022, the value of PMP had declined dramatically, however the Fund continued to list PMP at an inaccurate and inflated value in violation of Section 4001.058 of the Texas Securities Act.
In addition, the TSSB found that the Fund failed to disclose to a subsequent investor that there were outstanding redemption requests of nearly $5 million, that the Fund was 99% invested in a single thinly traded stock and that the investors $250,000 investment would be used to partially satisfy some of the outstanding redemption requests. These failures constitute fraud as defined by Section 4001.058 of the Texas Securities Act.
Jawahar’s conduct in connection with Swiftarc and the Fund constitutes a violation of Section 4004.052 of the Texas Securities Act according to the TSSB.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
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