SEC v. Krish Kumar, No. LR-26507, Northern District of Oklahoma (Mar. 27, 2026) — Press Release

U.S. SECURITIES AND EXCHANGE COMMISSIONLitigation Release No. 26507 / March 27, 2026Securities and Exchange Commission v. Krish Kumar, No. 26-cv-00184 (N.D. Okla. filed Mar. 26, 2026)SEC Files Settled Action as to Oklahoma Resident for Allegedly Defrauding Investors in Two OfferingsOn March 26, 2026, the Securities and Exchange Commission filed settled charges against Oklahoma resident Krish Kumar for allegedly making materially false and misleading representations to investors regarding two separate offerings.According to the SEC’s complaint, from approximately January 2024 through February 2025, Kumar raised approximately $7.8 million through two investment funds that he established and solely managed, Future Fractal Investments LLC and Arcane Resonance Fund, LLC (collectively, “the Funds”), and, while acting as an investment adviser, misappropriated nearly $7 million of the Funds’ collective assets by transferring them to personal accounts he controlled. The complaint alleges that prior to transferring Future Fractal assets to his personal accounts, Kumar placed trades that were inconsistent with the investment strategy he marketed to Future Fractal investors, which ultimately resulted in the loss of virtually all Future Fractal’s assets. The complaint further alleges Kumar misrepresented Future Fractal’s performance to an Arcane investor and used at least $300,000 of the funds raised from Arcane investors to make unauthorized payments to a Future Fractal investor for losses sustained in Future Fractal.The SEC’s complaint, filed in the U.S. District Court for the Northern District of Oklahoma, charges Kumar with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. Without admitting or denying the allegations in the complaint, Kumar consented to the entry of a judgment, subject to court approval, in which he agreed to permanent injunctions enjoining him from future violations of the charged provisions of federal securities law, conduct-based injunctions, and an order that monetary remedies will be determined by the Court upon a future motion by the SEC.The SEC’s investigation was conducted by Kathleen Galloway and Carol Stumbaugh, under the supervision of Derek Kleinmann and Jaime Marinaro of the SEC’s Fort Worth Regional Office, and with the assistance of Robert Nesbitt and William Connolly in the SEC's Office of Investigative and Market Analytics. The litigation will be led by Patrick Disbennett under the supervision of Keefe Bernstein.

U.S. SECURITIES AND EXCHANGE COMMISSIONLitigation Release No. 26507 / March 27, 2026Securities and Exchange Commission v. Krish Kumar, No. 26-cv-00184 (N.D. Okla. filed Mar. 26, 2026)SEC Files Settled Action as to Oklahoma Resident for Allegedly Defrauding Investors in Two OfferingsOn March 26, 2026, the Securities and Exchange Commission filed settled charges against Oklahoma resident Krish Kumar for allegedly making materially false and misleading representations to investors regarding two separate offerings.According to the SEC’s complaint, from approximately January 2024 through February 2025, Kumar raised approximately $7.8 million through two investment funds that he established and solely managed, Future Fractal Investments LLC and Arcane Resonance Fund, LLC (collectively, “the Funds”), and, while acting as an investment adviser, misappropriated nearly $7 million of the Funds’ collective assets by transferring them to personal accounts he controlled. The complaint alleges that prior to transferring Future Fractal assets to his personal accounts, Kumar placed trades that were inconsistent with the investment strategy he marketed to Future Fractal investors, which ultimately resulted in the loss of virtually all Future Fractal’s assets. The complaint further alleges Kumar misrepresented Future Fractal’s performance to an Arcane investor and used at least $300,000 of the funds raised from Arcane investors to make unauthorized payments to a Future Fractal investor for losses sustained in Future Fractal.The SEC’s complaint, filed in the U.S. District Court for the Northern District of Oklahoma, charges Kumar with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. Without admitting or denying the allegations in the complaint, Kumar consented to the entry of a judgment, subject to court approval, in which he agreed to permanent injunctions enjoining him from future violations of the charged provisions of federal securities law, conduct-based injunctions, and an order that monetary remedies will be determined by the Court upon a future motion by the SEC.The SEC’s investigation was conducted by Kathleen Galloway and Carol Stumbaugh, under the supervision of Derek Kleinmann and Jaime Marinaro of the SEC’s Fort Worth Regional Office, and with the assistance of Robert Nesbitt and William Connolly in the SEC's Office of Investigative and Market Analytics. The litigation will be led by Patrick Disbennett under the supervision of Keefe Bernstein.