Man Arrested For “Ponzi” Style Investment Fraud Scheme
ALEXANDRIA, Va. – A Fairfax man was arrested today on charges of orchestrating a multi-year investment fraud scheme causing at least hundreds of thousands of dollars in losses to dozens of victims.
According to allegations in the complaint, Amrit Jaswant Singh Chahal, 30, operated an investment fraud scheme through The Kane Capital Investment Group, LLC (Kane Capital), a company he established and operated. Chahal executed this fraud through a “Ponzi” scheme, whereby funds solicited from new investors were used to pay disbursements to old investors, without disclosing this fact to his investors.
According to allegations in the complaint, Chahal falsely represented 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. The complaint further alleges that Chahal created falsified brokerage statements to conceal the losses he had sustained, opened a bank account in the name of an investor without that investor’s knowledge or consent, and siphoned off some of his investors’ funds by transferring the money to accounts he controlled or by spending the funds on personal items.
The criminal complaint charging Chahal with wire fraud was unsealed today. He faces a maximum penalty of 20 years in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorneys Matthew Burke and Jamar K. Walker are prosecuting the case.
Individuals who believe they may be a victim of this fraud are encouraged to call the Eastern District of Virginia Victim/Witness Coordinators at 1-800-221-6538.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-MJ-70.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.