Travis Kelce, one of the most widely recognized athletes, has reportedly been caught up as a victim of a multimillion-dollar Ponzi scheme.
According to the latest reports, former investment adviser Siddharth Jawahar was sentenced to 11 years in federal prison on Tuesday, for allegedly running a Ponzi scheme.
Jawahar, 38, pleaded guilty in January to three counts of federal wire fraud. U.S. District Judge Zachary M. Bluestone sentenced him on Sept. 15 and ordered him to pay $31.35 million in restitution to victims.
Prosecutors said Jawahar operated the scheme through Swiftarc Capital, a Texas-based investment company. From about July 2016 through December 2023, he collected more than $35 million from investors but invested only about $10 million.
Kelce's connection to the case dates to his reported investment in the Swiftarc Venture Labs Fund, which Jawahar co-founded. Prosecutors identified the NFL star as one of the victims during the sentencing hearing but did not disclose how much money he may have lost.
The scheme allegedly relied on new investors' money to repay earlier investors. Prosecutors said Jawahar also used investor funds to support an expensive lifestyle that included private jet travel, luxury hotels, private club memberships, high-end shopping and costly restaurant visits.
According to federal prosecutors, Jawahar began concentrating client money in a single investment in Philip Morris Pakistan in 2015. As the investment lost value, he allegedly failed to tell investors and instead gave them false information about the performance of their money.
Prosecutors said Jawahar also accepted money from investors after making promises to place their funds in specific companies, but failed to make some of those investments. The case eventually grew into a federal fraud investigation involving the FBI and the Manhattan District Attorney's Office.
The case also drew attention from Missouri Republican Rep. Sam Graves, who wrote to the federal judge before sentencing and requested a four-year prison term for Jawahar. Federal prosecutors also said Jawahar attempted to obstruct the investigation after his indictment.
They accused him of trying to influence a victim's statement, concealing financial information and attempting to erase evidence from his cellphone. Jawahar remains in custody following his sentencing. His case has placed renewed attention on the risks investors can face when financial advisers make false claims about where money is being invested and how those investments are performing.
