The Securities and Exchange Commission (SEC) this week barred a former broker, Rajesh Markan, who had earlier this year pleaded guilty to one count of criminal fraud related to his sale over nine years of phony private equity investments to 10 clients, totaling $2.9 million.
Markan, 48, resides in suburban Dallas. According to the SEC, his scheme ran from 2015 to 2024. Over that time, Markan, who started working in the securities industry in 2002, worked at Merrill Lynch and then at Hilltop Securities from 2022 to 2024.
Barkan could not be reached on Friday for comment.
Spokespersons for both those firms on Friday morning declined to comment.
At the end of March, Markan entered a guilty plea to one count of securities fraud in US district court, the northern district of Texas, according to the SEC, which barred the former advisor on Wednesday.
The SEC filed its complaint against Markan last month. It is typical for the agency to follow criminal matters with civil actions and penalties.
The SEC in its lawsuit claimed that, during the time period stated above, Markan “made false and misleading statements and engaged in a fraudulent scheme to deceive in connection with the offer and sale of securities,” while working at two dually registered firms, both as a registered rep and an investment adviser rep.
“Markan solicited approximately ten of his brokerage customers from three separate states to invest, collectively, approximately $2.9 million in a purported private equity fund,” according to the SEC. “Markan falsely told the investors that a well-known New York private equity firm advised the fund and provided investors a sham prospectus to describe the offering.”
“In reality, the fund did not exist, the fund was not associated with the New York private equity firm, and Markan misappropriated most of the investors’ money,” according to the SEC.
The Financial Industry Regulatory Authority (FINRA) in October barred Markan from the securities industry for not cooperating in its investigation of the allegations he faced.
His FINRA BrokerCheck profile lists nine pending complaints involving Markan.
In a complaint filed in February alleging $500,000 in damages, the clients claimed that they were solicited by Markan to invest in an outside investment that was fraudulent, as well as misappropriation of funds. The other complaints have similar charges.
A Nationwide survey finds 47% of GLP-1 users have never discussed the drugs’ financial impact with an advisor, even as many dip into savings.
The hundreds of millions of dollars from a sale of Inspired Healthcare properties does not mean an immediate windfall for investors.
Its SEC filings said one thing - a congressional probe said another.
Sham agreements allegedly padded revenue by 345%.
"Most pre-retirees are uncomfortable making key retirement income decisions without an advisor's help," said Chris Bailey of Cerulli.
Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.
As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor
