New York: An Indian-origin investment adviser has been charged by US federal authorities for orchestrating a fraudulent million dollar investment scheme over several years.  

Amrit J S Chahal, 30 of Fairfax, Virginia has been charged by the Securities and Exchange Commission (SEC). The US Attorney's Office for the Eastern District of Virginia also announced criminal charges against Chahal. The Commodities Futures Trading Commission also charged Chahal.  

The SEC's complaint alleges that, from at least February 2015, Chahal used his company, Kane Capital Investment Group to fraudulently solicit approximately USD 1.4 million from about 50 individuals, including friends and family members.  

Chahal is the President, Chief Executive Officer, and sole employee of Kane Capital. Chahal has never held any securities licenses, nor has he ever been associated with a registered broker-dealer or investment adviser other than Kane Capital.  

According to the complaint, Chahal lured investors by falsely claiming to be an experienced and successful trader who could generate above-market returns for clients through a low-risk trading strategy.  

The SEC alleges that, in reality, Chahal had substantially no experience working in the financial or securities industry or trading securities on behalf of clients. The complaint further alleges Chahal initially invested client funds in a variety of investments, but suffered significant trading losses.  

According to the complaint, instead of disclosing the losses, Chahal lied to his clients about their investment returns, continued raising funds, then used the money for his personal benefit, including to pay for his luxury car, rent, travel, dining, and other living expenses, and to make Ponzi-like payments to earlier investors. PTI