Protecting Investors: SEC’s Warning and Collaborative Efforts to Combat Fraud
Broward County, Florida resident Sanjay Singh and his trucking and logistics company, Royal Bengal Logistics Inc., are facing charges brought by the Securities and Exchange Commission (SEC) for allegedly defrauding investors, primarily targeting Haitian-Americans, in an unregistered securities offering. According to the SEC’s complaint, Singh and his company fraudulently raised approximately $112 million from around 1,500 investors.
The complaint, filed in the U.S. District Court for the Southern District of Florida, asserts that Singh and Royal Bengal Logistics Inc. enticed investors with high-yield investment programs promising guaranteed returns ranging from 12.5 to 325 percent. They purportedly assured investors that their funds would fuel business expansion and the growth of their semi-truck and trailer fleet. The SEC, however, alleges that Royal Bengal operated at a loss and resorted to using approximately $70 million of new investor funds to make payments to earlier investors, resembling a Ponzi scheme.
Singh stands accused of misappropriating at least $14 million of investor funds for personal use and providing no legitimate services in return. Additionally, he allegedly diverted over $19 million of investor funds to two brokerage accounts under his control, engaging in speculative equities trading on margin and incurring losses exceeding $1 million of investor money.
Eric I. Bustillo, the Director of the SEC’s Miami Regional Office, expressed their commitment to holding accountable individuals like Singh who deceive and exploit investors. The SEC seeks legal remedies, including injunctions, civil money penalties, disgorgement of ill-gotten gains with prejudgment interest, and an officer and director bar against Singh and Royal Bengal.
In response to this case, the SEC’s Office of Investor Education and Advocacy and the Division of Enforcement’s Retail Strategy Task Force have issued an Investor Alert cautioning investors against making investment decisions solely based on common ties with those recommending or selling investments.
The SEC acknowledges the assistance provided by various entities, including Florida’s Office of Financial Regulation, the U.S. Attorney’s Office for the Southern District of Florida, the FBI’s Miami Field Office, and the U.S. Department of Transportation’s Office of Inspector General, Southern Region.
The SEC’s investigation into this matter is part of the Miami Regional Office’s Fraud Against Minority Groups Initiative. The team responsible for conducting the investigation includes Linda S. Schmidt, supervised by Sean M. O’Neill and Glenn Gordon, with support from Mark Dee, Fernando Torres, and Ivette Goizueta-Mendes. The SEC’s litigation efforts will be led by Russell O’Brien under the supervision of Teresa J. Verges.
To stay updated, follow us @coolbruthas on Twitter and Instagram. Join the discussion and become a member of our rapidly growing community!
