The U.S. Securities & Exchange Commission has frozen the assets of a former investment adviser in California after the adviser allegedly funneled $33 million from NFL and MLB players to help prop up his failing ticket reservation business.
According to the lawsuit filed by the SEC, Ash Narayan, a former investment adviser at RGT Capital Management, bilked clients including San Francisco Giants pitcher Jake Peavy and Denver Broncos quarterback Mark Sanchez, among others, by shifting their funds to his ticket business, The Ticket Reserve Inc. Narayan failed to tell his investors of his interest in the company, and in many cases, did not obtain their authorization prior to doing so.
Narayan allegedly used his and the athletes’ mutual religious faith to induce the athletes to invest with him. He also misrepresented himself as a certified professional accountant in order to gain his clients’ trust. In addition to the millions that went to his ailing company, he also took more than $1.8 million in “finder’s fees” from client funds, later characterizing these fees as loans. In order to hide the fact that his business was failing, Narayan made Ponzi-style payments to clients.
In May, Ticket Reserve shareholders filed a derivative lawsuit on behalf of the company claiming company executives breached their fiduciary duty to the company by wasting corporate assets and taking on loans that only could be repaid by issuing equity-diluting stocks and options.
The SEC lawsuit also named The Ticket Reserve Inc.’s CEO Richard Harmon and COO John Kaptrosky in the suit.
Call a Los Angeles Securities Fraud Attorney Today
If you invested with Ash Narayan or The Ticket Reserve Inc., you may have certain legal rights that require your immediate attention.
Contact an experienced Los Angeles securities fraud attorney today for a consultation to discuss your rights and options.