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Wednesday, March 29, 2023

SEC Freezes Property of Advisor Accused of Stealing $4M From Consumer

The Securities and Trade Fee obtained a short lived restraining order towards and froze the belongings of a New York-based funding advisor who’s additionally dealing with prison fees for stealing greater than $4 million from a single investor.

Surage Roshan Perera, the founder and govt director of Janues Capital Administration in Bellerose, Queens, was arrested earlier this week and went earlier than federal courtroom in Central Islip, Lengthy Island. 

He confronted a 16-count indictment, together with securities fraud, funding advisor fraud, wire fraud and cash laundering, in keeping with the Division of Justice.

Though Perera is not registered, he labored at plenty of companies since 2003, most lately at Aegis Capital from 2018 to 2022, in keeping with his BrokerCheck profile.

Each the DOJ and SEC fees middle on an unnamed investor, often known as “Jane Doe” within the indictment. Perera met Doe when he was an Aegis rep, and in February 2022, satisfied her to speculate with 4 issuers by means of Janues, saying he may buy “giant allotments” of issuers’ restricted inventory at a reduction. Attorneys for Perera couldn’t be reached as of publication.

By a method he referred to as “choices straddles,” Perera mentioned he may stop losses and assure returns on some investments as much as 9%, with the potential reaching 50% in returns, in keeping with the SEC. Over the course of the subsequent a number of months till August 2022, the shopper made seven funds, starting from $270,000 to greater than $1.3 million, for a complete of almost $4.3 million, in keeping with the fee.

However normally, after getting the funding quantity, Perera would withdraw a lot of it through direct transfers to his personal checking account. Finally, he parked a lot of the funds in a brokerage account in his spouse’s identify, although Perera appeared to have entry or management of the account.

As an alternative of constructing the investments, he misplaced about $3 million of Jane Doe’s funds in “excessive quantity, extremely leveraged buying and selling” in different securities, with greater than $2.5 billion in whole transactions throughout that point. 

All this time, the investor requested for proof of the investments, and Perera would provide false proof, together with documentation on transactions that didn’t exist. Final month, Jane Doe spoke with two individuals, together with a former colleague of Perera’s from Aegis Capital, who assured her that he may by no means have obtained the reductions he promised from issuers. 

She continued to push him for compensation, and he continued to demur, at one level blaming the current financial institution failures and claiming a celebration he tried to get loans from banked with Signature. Finally, Perera resorted to utilizing funds from others to make her funds.

Perera faces a most of 20 years in jail if convicted. The SEC additionally named Nishani Alahakoon, Perera’s spouse, as a aid defendant. Along with efficiently getting a restraining order and asset freeze, the fee is pursuing disgorgement and civil penalties.

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