A federal judge sentenced Siddharth Jawahar, 38, to 11 years in prison and ordered him to pay $31.35 million in restitution for operating a Ponzi scheme that defrauded investors—including Kansas City Chiefs tight end Travis Kelce—of more than $35 million, the Justice Department announced Tuesday.
U.S. District Judge Zachary M. Bluestone handed down the sentence, according to the DOJ statement. Jawahar pleaded guilty in January to three counts of wire fraud.
Kelce, the NFL star married to Taylor Swift, was identified as a victim during a recent court hearing, KMOV reported. A 2021 Forbes article also listed Kelce as an investor in Swiftarc Ventures.
How the Scheme Worked
Jawahar ran Swiftarc Capital LLC, a Texas-based investment firm that he used to funnel client money into a single investment: Philip Morris Pakistan (PMP), starting in 2015. Eventually, 99% of his clients’ funds sat in that one stock, according to the Justice Department.
When PMP’s value collapsed, Jawahar did not tell investors. Instead, he falsely claimed they were making a profit, the DOJ said. He also led investors to believe their money was being placed in specific companies, when in fact he never made those investments.
Between July 2016 and December 2023, Jawahar collected more than $35 million from Swiftarc investors, but only about $10 million was actually invested, according to the Justice Department.
He kept the scheme afloat by using new investors’ money to repay earlier ones—the hallmark of a Ponzi scheme. The rest funded a lavish lifestyle: private jet travel, luxury hotel stays, an upscale apartment in Austin and another in New York City, memberships at multiple private clubs across the country, clothing shopping sprees and expensive meals at high-end restaurants.
Obstruction and Lies
After his indictment, Jawahar tried to coach one of his victims into giving a “favorable” statement to federal investigators, according to the Justice Department. He also lied about his immigration status and his finances, and attempted to have his sister wipe evidence from his phone.
In addition to Swiftarc Capital, Jawahar managed more than a dozen other investment firms, the DOJ said.
The case adds a notable name to the roster of victims in a fraud that spanned nearly a decade. Kelce, one of the most recognizable figures in American sports, has not publicly commented on the sentencing.
Jawahar’s restitution order—$31.35 million—falls short of the total $35 million prosecutors say investors lost. Whether victims recover any of those funds remains uncertain.
Source: www.dailywire.com — https://www.dailywire.com/news/taylor-swifts-husband-travis-kelce-falls-victim-to-illegal-immigrant-crime