Businessman Pleads Guilty to Investment Fraud Scheme in Virginia
Alexandria, VA – A local businessman has pleaded guilty to orchestrating a multi-year investment fraud scheme that caused at least hundreds of thousands of dollars in losses to dozens of victims.
Amrit Jaswant Singh Chahal, 30, of Fairfax, operated an investment fraud scheme through The Kane Capital Investment Group, LLC (Kane Capital), a company he established and operated. Chahal executed this fraud by falsely representing that Kane Capital had earned returns of roughly 28 to 34 percent annually, when in fact, Chahal had suffered substantial losses in managing investors’ funds.
Chahal also created falsified brokerage statements to conceal the losses he had sustained and siphoned off some of his investors’ funds by transferring the money to accounts he controlled or by spending the funds on personal items. When investors asked for returns on their investment, Chahal frequently used money from newer investors to pay disbursements to older investors, without disclosing this fact to his investors.
Chahal pleaded guilty to one count of wire fraud and one count of securities and commodities fraud. He faces a maximum penalty of 20 years in prison on the wire fraud count and 25 years in prison on the securities and commodities fraud count when sentenced on February 8, 2019. Actual sentences for federal crimes are typically less than the maximum penalties.
A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. The Virginia State Corporation Commission provided significant assistance with this investigation.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea. Assistant U.S. Attorneys Matthew Burke and Jamar K. Walker are prosecuting the case.
The exact amount of losses incurred by investors was not specified in the plea agreement. Chahal’s sentencing is scheduled for February 8, 2019.
Key Facts
- State: Virginia
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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