A former investment adviser from Texas has pleaded guilty to running a Ponzi scheme that defrauded investors in Missouri and other states of more than $25 million. Siddharth Jawahar, 38, entered his plea on Wednesday in U.S. District Court in St. Louis to three counts of wire fraud.
Jawahar operated Swiftarc Capital LLC, an investment company based in Texas. Initially, he invested client funds across various securities but shifted in 2015 to concentrate nearly all investments—eventually 99%—into Philip Morris Pakistan (PMP). When PMP’s value dropped, Jawahar did not inform his clients about the losses. Instead, he falsely reported that shares were performing well and claimed they were making profits. He used money from new investors to pay earlier ones and financed a lavish lifestyle with private flights, luxury hotels, and expensive restaurants.
Jawahar also admitted to misleading investors by entering into false agreements promising specific investments that never occurred. Among those affected were two Missouri investors who gave him $175,000 and $75,000 respectively, a New York investor who provided $350,000, and an Ohio investor who contributed $250,000.
Between July 2016 and December 2023, Jawahar collected over $35 million from Swiftarc investors but invested only about $10 million of those funds.
He managed several other entities during the scheme including Swiftarc Fund LP; Swiftarc LLC; Swiftarc Holdings; SJ Investment Holdings LLC; Order of Magnitude Ventures LLC; Extra Sensory Perception Inc.; Swiftarc Growth Fund LP; Swiftarc Opportunities Fund LP; SV Labs SPV 1 LP; Swiftarc Venture Labs Fund GP LLC; SJDB Ventures LLC; Swiftarc Ventures LLC; Swiftarc Venture Labs Fund LP; Swiftarc Telehealth Labs Fund LP; NI Stubbs LLC; and Swiftarc Beauty Fund LP.
Sentencing is set for April 21. Each count of wire fraud carries a maximum penalty of up to 20 years in prison and a fine of $250,000 or both. Jawahar will also be required to repay the defrauded investors.
The case was investigated by the FBI and the Manhattan District Attorney’s Office. Assistant U.S. Attorney Derek Wiseman is handling the prosecution.
