Tessa Everly
The founder of a Texas-based investment firm has been sentenced to 11 years in federal prison due to his involvement in a Ponzi scheme, which prosecutors claim defrauded 64 victims. Notably, one of these victims is Kansas City Chiefs tight end Travis Kelce.
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Understanding the Ponzi Scheme
On September 15, U.S. District Judge Zachary Bluestone sentenced Siddharth Jawahar, 38, and mandated he pay $31.35 million in restitution to his victims. Jawahar’s attorney has not yet provided a comment in response to a voicemail inquiry.
The U.S. Attorney’s Office for the Eastern District of Missouri reported that from July 2016 to December 2023, Jawahar raised over $35 million from investors through his company, Swiftarc Capital LLC. only approximately $10 million of that capital was actually invested.
Prosecutors revealed that Jawahar utilized funds from new investors to pay returns to earlier investors and to support a lavish lifestyle. This lifestyle included luxury residences in New York City and Austin, Texas, private jet travel, and extravagant outings.
Details on Jawahar’s Immigration Status
Siddharth Jawahar faced indictment by a grand jury in 2023 and pleaded guilty in January to three counts of wire fraud. Originally from India, Jawahar had been residing in the U.S. without legal status since 2005, as per court records. Following his indictment, prosecutors allege that Jawahar attempted to coach a victim into providing a favorable statement to the FBI. he reportedly misrepresented his immigration status and tried to persuade a relative to remotely erase data from his iPhone to conceal evidence.
Travis Kelce’s Financial Loss in the Scheme
St. Louis news outlet KMOV-TV reported that prosecutors acknowledged in court that Travis Kelce was among the victims, though they did not provide further details. A 2021 article from Forbes indicated that Kelce had invested in a fund created by Jawahar’s company, Swiftarc.
Robert Patrick, spokesperson for the U.S. Attorney’s Office for the Eastern District of Missouri, confirmed that there were a total of 64 victims. Patrick refrained from addressing inquiries regarding Kelce’s specific involvement in the case. Similarly, representatives for Travis Kelce did not respond promptly to emails from the Associated Press seeking comment.
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Associated Press contributed to this report via AP Newsroom.
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