2025-06-27 sec-litreleases litigation_release 65 KB 3,150 chars

SEC v. Rajesh Markan, No. LR-26337, Northern District of Texas (June 27, 2025) — Press Release

raw: Rajesh Markan

Rajesh Markan, No. 3:25-cv-01653 (June 27, 2025)

Caption: Securities and Exchange Commission v. Rajesh

summary

Former registered representative Rajesh Markan settled SEC charges for defrauding ten customers of $2.9 million through a fake private equity fund.

paragraph

Rajesh Markan defrauded approximately ten customers of $2.9 million by soliciting investments for a nonexistent private equity fund called 'Intrinsic Value Portfolio.' He violated federal securities antifraud provisions by misrepresenting the fund's association with a prominent New York firm and misappropriating funds for personal use. Markan has agreed to a bifurcated settlement that includes a permanent injunction, with specific monetary penalties to be determined by the Court.

narrative

From 2015 through 2024, former registered representative Rajesh Markan solicited approximately ten customers to invest $2.9 million in a fictitious private equity fund named 'Intrinsic Value Portfolio.' To conceal the fraud, Markan used a fake domain name to mimic a well-known New York firm and sent fabricated account statements to investors. He misappropriated most of the funds for himself while promising above-market returns. In addition to the SEC's civil charges, Markan pleaded guilty to parallel criminal charges in June 2025 and was barred by FINRA in October 2024. Markan has entered into a bifurcated settlement with the SEC, which includes a permanent injunction against future antifraud violations. Final monetary remedies, including disgorgement and civil penalties, will be determined by the Court at a future date.

Enriched metadata

Scheme: pump-and-dump (80%)
Court: Northern District of Texas
Case No.: 3:25-cv-01653
Outcome: pleaded · 2025-06-10
Victim loss: $2,900,000
Entity: Rajesh Markan

Classified pump-and-dump(confidence 80%). EDGAR detection: forms S-8/S-1/424B/8-K· recall 69% / precision 12%. detection rule →

Extracted insights

Dollar amounts 1

$2.90M $2.9 million $1M–$10M

Entities 7

agency Finra
company his brokerage customers to invest in a fake private equity fund
company investors that a well-known new york private equity firm advised the fund
agency markan from associating with any finra member on october 1, 2024
person rajesh markan
agency sec’s complaint
agency Securities and Exchange Commission

Triples 15

Securities And Exchange Commission filed settled charges Rajesh Markan
Rajesh Markan solicited his brokerage customers to invest in a fake private equity fund
Markan solicited approximately ten of his brokerage customers to invest approximately $2.9 million in a purported private equity fund
Markan told investors that a well-known New York private equity firm advised the fund
Markan claimed it was a private equity investment
Markan told investors that their money would be tied up for six to twelve years
Markan assured them that they could expect to make above-market returns
Markan misappropriated most of the investors’ money for himself
Markan lulled investors by sending fabricated statements purporting to show their account balances
Markan created a fake domain name to send emails as a purported employee of the New York private equity firm
U.S. Attorney’s Office For The Northern District Of Texas filed criminal charges Markan
Markan pled guilty on June 10, 2025
FINRA barred Markan from associating with any FINRA member on October 1, 2024
SEC’s Complaint charges Markan with violating the antifraud provisions of the federal securities laws
Markan agreed to a bifurcated settlement

View original SEC litigation releasesec.gov

Extracted body text (3,150c)

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26337 / June 27, 2025 Securities and Exchange Commission v. Rajesh Markan, No. 3:25-cv-01653 (N.D. Tex. filed June 27, 2025) SEC Charges Former Registered Representative of Brokerage Firms with Defrauding Customers The Securities and Exchange Commission today filed settled charges against Rajesh Markan, formerly a registered representative and investment adviser representative employed by two securities brokerage firms, for soliciting his brokerage customers to invest in a fake private equity fund. According to the SEC’s complaint, from at least 2015 through July 2024, Markan, while working as a registered representative of two dually-registered broker-dealers and investment advisers, solicited approximately ten of his brokerage customers to invest, collectively, approximately $2.9 million in a purported private equity fund. The SEC alleges that Markan told the investors that a well-known New York private equity firm advised the fund, which Markan called “Intrinsic Value Portfolio.” The complaint alleges that because Markan claimed it was a private equity investment, Markan told investors that their money would be tied up for six to twelve years, but he assured them that, ultimately, they could expect to make above-market returns. According to the SEC’s complaint, none of these representations were true: the fund was fake and never existed, there was no association with the New York private equity firm, and Markan misappropriated most of the investors’ money for himself. The SEC also alleges that Markan lulled investors by sending fabricated statements purporting to show their account balances, and Markan created a fake domain name so he could send emails as a purported employee of the New York private equity firm. In a parallel action, the U.S. Attorney’s Office for the Northern District of Texas filed criminal charges against Markan in U.S. District Court for the Northern District of Texas, to which he pled guilty on June 10, 2025. Additionally, on October 1, 2024, the Financial Industry Regulatory Authority (FINRA) barred Markan from associating with any FINRA member. The SEC’s complaint, filed in U.S. District Court for the Northern District of Texas (Dallas Division), charges Markan with violating the antifraud provisions of the federal securities laws. Without admitting or denying the allegations in the complaint, Markan agreed to a bifurcated settlement and consented to the entry of a judgment permanently enjoining him from future violations of the antifraud provisions and ordering that monetary remedies (disgorgement, prejudgment interest, and a civil penalty) will be determined by the Court upon a future motion by the SEC. The settlement is subject to court approval. The investigation was conducted by Robert Boudreau and Keith Hunter of the SEC’s Fort Worth Regional Office and was supervised by Samantha Martin and B. David Fraser. The litigation will be led by Tyson Lies and supervised by Keefe Bernstein. The SEC appreciates the assistance of FINRA, the FBI and the U.S. Attorney’s Office for the Northern District of Texas.

OCR text (3,150c · html-text · 99% conf)

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26337 / June 27, 2025 Securities and Exchange Commission v. Rajesh Markan, No. 3:25-cv-01653 (N.D. Tex. filed June 27, 2025) SEC Charges Former Registered Representative of Brokerage Firms with Defrauding Customers The Securities and Exchange Commission today filed settled charges against Rajesh Markan, formerly a registered representative and investment adviser representative employed by two securities brokerage firms, for soliciting his brokerage customers to invest in a fake private equity fund. According to the SEC’s complaint, from at least 2015 through July 2024, Markan, while working as a registered representative of two dually-registered broker-dealers and investment advisers, solicited approximately ten of his brokerage customers to invest, collectively, approximately $2.9 million in a purported private equity fund. The SEC alleges that Markan told the investors that a well-known New York private equity firm advised the fund, which Markan called “Intrinsic Value Portfolio.” The complaint alleges that because Markan claimed it was a private equity investment, Markan told investors that their money would be tied up for six to twelve years, but he assured them that, ultimately, they could expect to make above-market returns. According to the SEC’s complaint, none of these representations were true: the fund was fake and never existed, there was no association with the New York private equity firm, and Markan misappropriated most of the investors’ money for himself. The SEC also alleges that Markan lulled investors by sending fabricated statements purporting to show their account balances, and Markan created a fake domain name so he could send emails as a purported employee of the New York private equity firm. In a parallel action, the U.S. Attorney’s Office for the Northern District of Texas filed criminal charges against Markan in U.S. District Court for the Northern District of Texas, to which he pled guilty on June 10, 2025. Additionally, on October 1, 2024, the Financial Industry Regulatory Authority (FINRA) barred Markan from associating with any FINRA member. The SEC’s complaint, filed in U.S. District Court for the Northern District of Texas (Dallas Division), charges Markan with violating the antifraud provisions of the federal securities laws. Without admitting or denying the allegations in the complaint, Markan agreed to a bifurcated settlement and consented to the entry of a judgment permanently enjoining him from future violations of the antifraud provisions and ordering that monetary remedies (disgorgement, prejudgment interest, and a civil penalty) will be determined by the Court upon a future motion by the SEC. The settlement is subject to court approval. The investigation was conducted by Robert Boudreau and Keith Hunter of the SEC’s Fort Worth Regional Office and was supervised by Samantha Martin and B. David Fraser. The litigation will be led by Tyson Lies and supervised by Keefe Bernstein. The SEC appreciates the assistance of FINRA, the FBI and the U.S. Attorney’s Office for the Northern District of Texas.