Siddharth Jawahar has been sentenced to 11 years in prison and three years of supervised release after admitting to conduct tied to a multimillion-dollar Ponzi scheme operated through Swiftarc Capital LLC, according to the US Department of Justice.

Prosecutors said Jawahar took in more than $35 million from investors but put only about $10 million to work. The remainder, authorities alleged, was used to repay earlier investors and cover a lavish pattern of personal spending.

Sentence follows January guilty plea

The case centers on three wire fraud counts that Jawahar pleaded guilty to in January. The DOJ said the scheme extracted more than $25 million from investors, while prosecutors separately stated that total investor funds raised exceeded $35 million.

Jawahar, an Indian national, had lived in the United States illegally since 2005, according to the DOJ. Following the prison term, he is also set to serve three years under supervision.

How prosecutors described the scheme

According to prosecutors, Swiftarc Capital LLC was used to bring in investor money that was not handled as promised. Of the more than $35 million raised, only around $10 million was invested, the government said.

Authorities alleged that new investor funds were diverted to make payments to earlier victims, a hallmark of a Ponzi structure. The DOJ also said substantial sums went toward Jawahar’s personal lifestyle rather than legitimate investment activity.

Spending allegations detailed by the government

In its description of the case, the DOJ said investor money paid for private plane travel, luxury hotels, expensive restaurants and other high-end expenses. Prosecutors also pointed to a luxury apartment in Austin and New York City, memberships at multiple private clubs around the country, and shopping sprees at clothing stores.

Those allegations were presented as part of the government’s account of how funds were used after they were collected from investors.

Obstruction claims after indictment

Prosecutors said Jawahar also tried to obstruct justice after he was indicted. The DOJ alleged that he attempted to coach a victim into giving the FBI a favorable statement, lied about his immigration status and finances, and tried to have his sister remotely wipe his iPhone to conceal evidence.

Those actions were cited by the government alongside the underlying fraud charges in describing the seriousness of the case.

Confirmed outcome and next step

The confirmed outcome is an 11-year federal prison sentence followed by three years of supervised release. The conviction rests on Jawahar’s January guilty plea to three wire fraud counts tied to Swiftarc Capital LLC.

Beyond the sentence and supervision term, the source material does not provide further court scheduling or additional post-sentencing steps.

Source: dailyhodl.com