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 $141M judgment and a federal asset freeze collide over one shrinking pool
The firm's CFO and EVP of Wealth Management Solutions are the latest executives to exit the broker-dealer.
Clients are saying they would consider switching advisors if another professional offered estate planning services, according to a new Trust & Will survey.
CEO Laurel Taylor says the fintech's composable AI stack helps workers optimize dollars across Trump Accounts, 529s, 401(k)s, and other employee benefits.
The bank has swiped three private banking veterans from BNY as the city climbs the ranks of America's fastest-growing wealth hubs.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
