Travis Kelce Named Among 64 Victims In Indian-Origin Businessman’s $35 Million Ponzi Scheme
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Summarized by AI; it may make mistakes. Check important info
Travis Kelce, the husband of American pop star Taylor Swift, was among 64 people defrauded in a Ponzi scheme run by Indian-origin businessman Siddharth Jawahar that took in more than $35 million, according to US court proceedings.
Kelce, 36, a tight end for the Kansas City Chiefs in the National Football League (NFL), was identified as a victim during Jawahar’s sentencing hearing in a federal court in St Louis on Tuesday.
Jawahar, 38, was sentenced to 11 years in federal prison after pleading guilty to three counts of wire fraud. He was also ordered to pay $31.35 million in restitution to his victims.
Prosecutors did not disclose details about Kelce’s involvement in the scheme or say how much he may have invested or lost. His representatives have also not publicly disclosed the amount involved. Kelce’s identification in the case is solely as a victim, with no allegation of wrongdoing against him.
A 2021 Forbes report had previously identified Kelce as an investor in a fund established by Jawahar’s company, Swiftarc.
How The $35 Million Ponzi Scheme Worked
Jawahar ran Texas-based investment company Swiftarc Capital LLC. Prosecutors said he told clients that their money would be invested in a range of companies.
Instead, he eventually concentrated nearly all of the client funds in a single overseas investment, Philip Morris Pakistan.
When that investment declined in value, Jawahar allegedly concealed the losses and continued telling investors that their money was generating profits, prosecutors said.
He then used money from newer investors to repay earlier clients, following the structure of a Ponzi scheme.
Between July 2016 and December 2023, Jawahar took in more than $35 million from investors but invested only about $10 million, according to prosecutors.
The remaining funds were used partly to repay earlier investors and to finance what prosecutors described as an extravagant lifestyle.
Court filings detailed spending on private jet travel, luxury hotels, high-end apartments, private club memberships, shopping and expensive outings.
Jawahar Sentenced To 11 Years
Jawahar was indicted in December 2023 and pleaded guilty in January to three counts of wire fraud. Prosecutors had initially charged him with an additional count of investment adviser fraud, but that charge was dropped as part of the plea agreement.
Jawahar is from India and had been living in the US without legal status since 2005, according to court records and US media reports.
After his indictment, prosecutors accused him of attempting to interfere with the investigation. They said he tried to coach a victim into giving a favourable statement to the FBI, lied about his immigration status and finances, and asked his sister to remotely wipe his iPhone to conceal evidence.
US District Judge Zachary M Bluestone sentenced Jawahar to 11 years in prison and ordered him to pay $31.35 million in restitution.
The judge cited the scale and duration of the fraud while noting that Jawahar had not begun repaying his victims.
The US Attorney’s Office said 64 people were victims of the scheme. The amount Kelce invested or any individual loss suffered by him has not been disclosed.
