Today, the U.S. Securities and Exchange Commission (“SEC”) charged the owner of several non-operational investment entities with fraudulently selling shares of stock that he claimed he owned when, in reality, he actually purchased the stock for others a few years prior.
In court papers, the SEC alleges that Vinay Kumar Nevatia used several aliases while living in California to sell approximately one million dollars worth of stock he claimed to own in a privately-held CSS Corp. Technologies (Mauritius) Limited, an information technology company. According to the SEC, Nevatia deceived buyers into believing that Nevatia owned the shares and orchestrated a series of secret wire transfers by using stock transfer agents to record the fraudulent sales. Nevatia then used the money from investors for his own personal gain, according to the SEC. Furthermore, according to the SEC’s complaint filed in the federal district court located in San Francisco, Nevatia provided the true owners of the shares with fake updates for more than a year after he sold the stock. The actual owners bought the CSS stock through Nevatia in 2008 and, according to the SEC, Nevatia has never been registered with the SEC and is not licensed to trade securities.
Nevatia’s alleged actions have garnered him his own “Wanted” website, presumably put up by frustrated investors, called http://www.vinaykumarnevatia.com/. With infamy like this, it is only a matter of time before the SEC starts to investigate.
If you or someone you know has been a victim of a fraudulent investment scheme. Please contact us at (619) 990-7491, immediately.
This securities law blog post about investor fraud is provided as a general informational service to clients and friends of Feinstein Law, PA and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship.
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