SEC Stops Scheme Defrauding Athletes Dead in its Tracks

The Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (SEC) has obtained a court order freezing the assets of an investment adviser that it has charged with secretly siphoning millions of dollars from accounts he managed for professional athletes and investing them in a struggling online sports and entertainment ticket business on whose board he served.

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The SEC charged the adviser, Ash Narayan, along with The Ticket Reserve CEO Richard M. Harmon, and chief operating officer John Kaptrosky, after it was alleged that Narayan transferred more than $33 million from clients’ accounts to The Ticket Reserve without their knowledge or consent and often using forged or unauthorised signatures.

The Ticket Reserve made Ponzi-like Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term to existing investors using money from new investors.

The Ticket Reserve became dependent on the fraudulent cash infusions from Narayan to stay in business and in exchange, Narayan received nearly $2 million in hidden compensation from the company, most of it directly traceable to funds stolen from his clients.

Ponzi-Like Payments

The Ticket Reserve also made Ponzi-like payments to existing investors using money from new investors. After being fired from the investment firm where he worked and losing access to the clients’ accounts, Narayan is alleged to have redirected to the sham fees he received out of the money taken from client accounts to The Ticket Reserve.

The SEC’s complaint alleges that Narayan, The Ticket Reserve, Harmon, and Kaptrosky violated antifraud provisions of the federal securities laws and a related SEC antifraud rule and has charged them accordingly. The SEC is seeking re-payment of the fraudulent gains and preliminary and permanent injunctions.