Swiftarc Capital Founder Sentenced to 11 Years in Ponzi Scheme

Swiftarc Capital founder Siddharth Jawahar has been sentenced to 11 years in federal prison for running a Ponzi scheme that took more than $35 million from investors. U.S. District Judge Zachary M. Bluestone also ordered Jawahar to pay $31.35 million in restitution.

How the Swiftarc Scheme Worked

Jawahar ran the Texas-based investment company Swiftarc Capital LLC. In 2015, he began investing client funds in Philip Morris Pakistan (PMP), and eventually 99% of client funds were consolidated into the investment.

When PMP's value declined, prosecutors said Jawahar did not disclose the decline and falsely told investors they were making profits. He also accepted money for investments in specific companies that were never made.

From approximately July 2016 through December 2023, Jawahar took in more than $35 million but invested only about $10 million. He used money from new investors to repay earlier investors and fund private-jet travel, luxury hotels, apartments and other personal spending.

11-Year Sentence and $31.35 Million Restitution

Jawahar, 38, pleaded guilty in January 2026 to three counts of wire fraud. Judge Bluestone cited the scale and duration of the losses, as well as Jawahar's failure to begin repaying victims, when imposing the sentence.

The DOJ said Jawahar also attempted to obstruct the investigation after his indictment, including trying to coach a victim before an FBI interview and asking his sister to remotely wipe his iPhone.

The case was investigated by the FBI and Manhattan District Attorney's Office, with Assistant U.S. Attorney Derek Wiseman prosecuting.

For investors, the case highlights the importance of checking an investment firm's regulatory status, fund structure and use of client money before committing capital. Follow BrokersView for further investment fraud and regulatory updates.

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