SEC v. M. "Shi" Shailendra, No. LR-23055, Northern District of Georgia (Aug. 1, 2014) — Press Release
raw: M. "Shi" Shailendra
M. "Shi" Shailendra, No. 1:14-CV-02465-TCB (Aug. 1, 2014)
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M. "Shi" Shailendra is accused of defrauding investors by making false representations and misappropriating money through his company, Shi Investments Six, LLC. The alleged fraud involved soliciting investments for a real estate investment vehicle, with Shailendra misusing investor funds for personal gain and affiliated deals. Shailendra agreed to settle the case, with a proposed final judgment requiring him to disgorge $2,086,093 in ill-gotten gains, plus $443,359 in prejudgment interest, although the amount was waived due to his inability to pay. He also faces permanent injunctions and a bar from association with various financial organizations.
M. "Shi" Shailendra is accused of defrauding investors by making false representations and misappropriating money through his company, Shi Investments Six, LLC. The alleged fraud involved soliciting investments for a real estate investment vehicle, with Shailendra misusing investor funds for personal gain and affiliated deals. Shailendra agreed to settle the case, with a proposed final judgment requiring him to disgorge $2,086,093 in ill-gotten gains, plus $443,359 in prejudgment interest, although the amount was waived due to his inability to pay. He also faces permanent injunctions and a bar from association with various financial organizations. The U.S. Securities and Exchange Commission charged M. "Shi" Shailendra with defrauding investors by making false claims about Interstate North 5 Acres, LLC (formerly Shi Six), a purported real estate investment vehicle, while misappropriating over $2.08 million in investor funds for personal use and to support unrelated ventures. Shailendra, who acted as an unregistered broker, falsely represented his equity contributions and allocated ownership to himself without funding it. He settled without admitting or denying the allegations, agreeing to a permanent injunction barring him from securities violations, participation in any security offerings, and association with financial firms, as well as relinquishing all claims to Shi Six and resigning as its manager. Although the SEC sought $2,086,093 in disgorgement plus $443,359 in prejudgment interest, it waived the monetary penalties due to Shailendra’s inability to pay. The settlement also includes a permanent bar from participating in penny stock offerings under Exchange Act Section 15(b)(6). The U.S. Securities and Exchange Commission charged M. "Shi" Shailendra with defrauding investors by making false claims about Interstate North 5 Acres, LLC (formerly Shi Six), a purported real estate investment vehicle, while misappropriating over $2.08 million in investor funds for personal use and to support unrelated ventures. Shailendra also acted as an unregistered broker, failed to fund his own equity stake, and falsely allocated ownership to himself. Without admitting or denying the allegations, he agreed to a settlement that permanently enjoins him from securities violations and participation in any security offerings, bars him from association with financial firms, and requires him to relinquish all claims to Shi Six and resign as its manager. Although the SEC sought $2,086,093 in disgorgement plus $443,359 in prejudgment interest, it waived the monetary penalties due to Shailendra’s inability to pay. The settlement, pending court approval, also includes a permanent bar from participating in penny stock offerings.
Exhibits & Attached Documents (1)
Extracted insights
- $443K $443,359 $100K–$1M
- $2K $2,086 <$10K
- agency Securities and Exchange Commission
- organization Securities and Exchange Commission
- M. "Shi" Shailendra charged with making false representations to investors, misappropriating money, and acting as an unregistered broker
- Securities and Exchange Commission filed complaint against M. "Shi" Shailendra for fraud and unregistered brokerage activities
- M. "Shi" Shailendra solicited investments from investors using false representations
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23055 / August 1, 2014 Securities and Exchange Commission v. M. "Shi" Shailendra, Civil Action No. 1:14-CV-02465-TCB (N.D. Ga. filed July 31, 2014) SEC Charges M. "Shi" Shailendra with Defrauding Investors On July 31, 2014, the Securities and Exchange Commission charged M. "Shi" Shailendra with making false representations to investors, misappropriating money, and acting as an unregistered broker. According to the SEC's complaint filed in the U.S. District Court for the Northern District of Georgia, Shailendra solicited investments and sold securities in Interstate North 5 Acres, LLC f/k/a Shi Investments Six, LLC ("Shi Six") through oral and written misrepresentations. Shailendra touted Shi Six as a real estate investment vehicle that would invest in newly acquired distressed real estate. Among other things, Shailendra failed to fund his equity interests in the limited liability company but nonetheless allocated ownership to himself as if he had done so, misappropriated investor cash for himself, and used investor money to support his pre-existing, affiliated deals. Without admitting or denying the SEC's allegations, Shailendra agreed to settle the case. The settlement is pending final approval by the court. Specifically, Shailendra consented to the entry of a final judgment (1) permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933 (the "Securities Act") and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 thereunder; (2) permanently enjoining him from participating in the issuance, purchase, offer, or sale of any security, including, but not limited to, engaging in activities for purposes of inducing or attempting to induce the purchase or sale of any security; (3) finding him liable for disgorgement of $2,086,0935, the amount of his ill-gotten gains, plus prejudgment interest of $443,359, but waiving that amount and not ordering a monetary penalty based on Shailendra's inability to pay; (4) ordering Shailendra to relinquish any purported claims he has in or against Shi Six; and (5) requiring him to resign as Manager of Shi Six. As part of the settlement, and following the entry of the proposed final judgment, Shailendra, without admitting or denying the Commission's findings, has consented to the entry of a Commission order, pursuant to Exchange Act Section 15(b)(6), permanently barring him from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, or from participating in any offering of a penny stock. The SEC's investigation was conducted by Corey A. Schuster, Donato Furlano, and Charles D. Stodghill, and was supervised by Amy L. Friedman and Scott W. Friestad. The SEC appreciates the assistance of the Department of the Treasury's Office of Inspector General. SEC ComplaintU.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23055 / August 1, 2014 Securities and Exchange Commission v. M. "Shi" Shailendra, Civil Action No. 1:14-CV-02465-TCB (N.D. Ga. filed July 31, 2014) SEC Charges M. "Shi" Shailendra with Defrauding Investors On July 31, 2014, the Securities and Exchange Commission charged M. "Shi" Shailendra with making false representations to investors, misappropriating money, and acting as an unregistered broker. According to the SEC's complaint filed in the U.S. District Court for the Northern District of Georgia, Shailendra solicited investments and sold securities in Interstate North 5 Acres, LLC f/k/a Shi Investments Six, LLC ("Shi Six") through oral and written misrepresentations. Shailendra touted Shi Six as a real estate investment vehicle that would invest in newly acquired distressed real estate. Among other things, Shailendra failed to fund his equity interests in the limited liability company but nonetheless allocated ownership to himself as if he had done so, misappropriated investor cash for himself, and used investor money to support his pre-existing, affiliated deals. Without admitting or denying the SEC's allegations, Shailendra agreed to settle the case. The settlement is pending final approval by the court. Specifically, Shailendra consented to the entry of a final judgment (1) permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933 (the "Securities Act") and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 thereunder; (2) permanently enjoining him from participating in the issuance, purchase, offer, or sale of any security, including, but not limited to, engaging in activities for purposes of inducing or attempting to induce the purchase or sale of any security; (3) finding him liable for disgorgement of $2,086,0935, the amount of his ill-gotten gains, plus prejudgment interest of $443,359, but waiving that amount and not ordering a monetary penalty based on Shailendra's inability to pay; (4) ordering Shailendra to relinquish any purported claims he has in or against Shi Six; and (5) requiring him to resign as Manager of Shi Six. As part of the settlement, and following the entry of the proposed final judgment, Shailendra, without admitting or denying the Commission's findings, has consented to the entry of a Commission order, pursuant to Exchange Act Section 15(b)(6), permanently barring him from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, or from participating in any offering of a penny stock. The SEC's investigation was conducted by Corey A. Schuster, Donato Furlano, and Charles D. Stodghill, and was supervised by Amy L. Friedman and Scott W. Friestad. The SEC appreciates the assistance of the Department of the Treasury's Office of Inspector General. SEC Complaint