LawFuel.com – Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ANAND SEKARAN, the President and Director of Wasson Capital Ltd. (“Wasson”), an investment fund, was sentenced today in Manhattan federal court to 30 months for engaging in a $2.3 million scheme to defraud Wasson’s investors. SEKARAN misled Wasson investors concerning the fund’s value, distributed funds to investors that were contributed from other investors, and issued fraudulent account and fund performance statements.
He pled guilty in November 2012, and was sentenced today by U.S. District Judge Robert P. Patterson.
Manhattan U.S. Attorney Preet Bharara said: “Anand Sekaran spun a web of lies and engineered a Peter-to-pay-Paul scheme all designed to deceive existing investors, lure new investors and cover-up his market losses while he benefited financially. Sekaran left many of his investors to suffer dire financial consequences, and now it is Sekaran who will suffer the consequences of his actions.”
According to the Information and statements made during the guilty plea and other court proceedings:
In 1997, SEKARAN formed Wasson as an asset management firm in New York, New York, that would invest client money primarily in the U.S. options market, and he solicited investors from 1999 through 2010. As a result of both the substantial losses Wasson incurred and several redemption requests, SEKARAN defrauded investors, by diverting their funds, and perpetrating a “Ponzi” scheme using two different methods, from 2009 through June 2011.
First, SEKARAN misrepresented Wasson’s investment value and past performance, the ways investor funds were being used to existing and potential investors, and the source of funds distributed to investors who had requested redemptions. Specifically, he misrepresented that Wasson was stable and doing well so that he could secure additional contributions. Further, in response to certain investor redemption requests, SEKARAN used money from other investors to pay off the redeeming investors.
Second, SEKARAN distributed fraudulent statements to investors in order to forestall redemption requests, induce new investors to contribute to Wasson, and induce existing investors