$35 Million Ponzi Scheme Lands Siddharth Jawahar 11-Year Prison Term

India-West News Desk

ST. LOUIS, MO – Siddharth Jawahar, a 38-year-old investment adviser from India, has been sentenced to 11 years in federal prison for a Ponzi scheme that defrauded investors of more than $35 million.

Jawahar, who ran the Texas-based investment company Swiftarc Capital LLC, was also ordered to pay $31.35 million in restitution to his victims, the U.S. Attorney’s Office for the Eastern District of Missouri said.

Kansas City Chiefs star Travis Kelce was identified in court as one of the victims during Jawahar’s sentencing. Prosecutors did not disclose details about Kelce’s investment or the amount he lost.

Jawahar’s scheme centered on money he received from investors through Swiftarc. Prosecutors said he began putting client funds into Philip Morris Pakistan (PMP) in 2015. At one point, about 99 per cent of the client money was concentrated in that investment.

When PMP’s value fell, Jawahar did not tell investors about the losses. Instead, he continued to represent that their investments were making money, prosecutors said. Investors were also led to believe their funds had been placed in particular companies, although the promised investments were never made.

From about July 2016 through December 2023, Jawahar took in more than $35 million from investors but invested only about $10 million, according to prosecutors. He used money from new investors to repay earlier investors and spent part of it on an expensive lifestyle.

Prosecutors said that included private-jet trips, stays at luxury hotels, apartments in Austin and New York City, memberships at private clubs, clothing purchases and costly restaurant outings.

The case took another turn after Jawahar was indicted. Prosecutors said he tried to influence a victim’s statement to the FBI, lied about his immigration status and finances, and asked his sister to remotely wipe his iPhone in an effort to conceal evidence.

Prosecutors also said Jawahar had been living in the U.S. illegally since 2005 and later attempted to hide information about his immigration status during the investigation.

Jawahar pleaded guilty in January in U.S. District Court in St. Louis to three counts of wire fraud.

U.S. District Judge Zachary M. Bluestone cited the size of the losses and the length of the fraud in imposing the 11-year sentence. He also referred to a victim’s statement that Jawahar had “weaponized” investors’ trust and said his failure to begin repaying victims was a major factor.

Jawahar also managed several other entities that prosecutors said were used in connection with the scheme.

His attorney described him as “a very good man” who had made serious mistakes and was taking responsibility for them. The attorney said Jawahar had been trying from jail to recover money for restitution and planned to continue those efforts.