{"id":18927,"date":"2024-11-26T19:42:23","date_gmt":"2024-11-26T17:42:23","guid":{"rendered":"https:\/\/forklog.com\/en\/texas-investment-manager-misappropriates-18-5-million-in-client-funds-for-crypto-lending\/"},"modified":"2024-11-26T19:42:23","modified_gmt":"2024-11-26T17:42:23","slug":"texas-investment-manager-misappropriates-18-5-million-in-client-funds-for-crypto-lending","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/texas-investment-manager-misappropriates-18-5-million-in-client-funds-for-crypto-lending\/","title":{"rendered":"Texas Investment Manager Misappropriates $18.5 Million in Client Funds for Crypto Lending"},"content":{"rendered":"<p>A Texas investment manager, Khalid Parekh, has been accused of making false statements and unlawfully investing $18.5 million of client funds into cryptocurrencies, according to a <a href=\"https:\/\/www.sec.gov\/enforcement-litigation\/administrative-proceedings\/33-11329-s\">statement<\/a> from the U.S. Securities and Exchange Commission (SEC).<\/p>\n<p>The report states that Parekh and his consulting firm, Fair Invest, offered investments adhering to Sharia principles, which prohibit earning from debt.<\/p>\n<p>Clients were promised 4% annual dividends from long-term investments in stocks, <span data-descr=\"exchange-traded fund\" class=\"old_tooltip\">ETF<\/span>, mutual funds, and commodities.\u00a0<\/p>\n<p>Authorities discovered that instead, the funds were directed to two crypto lending platforms, where they were used for short-term loans. The firm failed to disclose that its affiliate received a portion of the loan income, creating a conflict of interest, and that Parekh was a shareholder in one of the platforms.\u00a0<\/p>\n<p>According to the Commission, from August 2021 to August 2022, 373 investors across 40 U.S. states used the service. Parekh collected a total of $18.5 million, primarily from members of the U.S. Muslim community.\u00a0\u00a0<\/p>\n<p>During the investigation, Fair Invest was stripped of its investment advisor license and compelled to return clients&#8217; funds along with the promised 4%. The firm and its head were ordered to cease operations and pay a $100,000 fine.<\/p>\n<p>The accused neither admitted nor denied the SEC&#8217;s findings, agreeing to a settlement under the terms set by the authorities.<\/p>\n<p>In the past year, the Commission has secured a record $8.2 billion through enforcement actions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Texas investment manager, Khalid Parekh, has been accused of making false statements and unlawfully investing $18.5 million of client funds into cryptocurrencies, according to a statement from the U.S. Securities and Exchange Commission (SEC). The report states that Parekh and his consulting firm, Fair Invest, offered investments adhering to Sharia principles, which prohibit earning [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":18926,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1246,26],"class_list":["post-18927","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-scammers","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"38","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/18927","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=18927"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/18927\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/18926"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=18927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=18927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=18927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}