Fairfax businessman pleads guilty to fraud

Published November 7, 2018 by Michael O'Connor

A Northern Virginia businessman has pleaded guilty to charges of organizing a multi-year investment fraud scheme that cost dozens of victims at least hundreds of thousands of dollars.

Amrit Jaswant Singh Chahal, 30, of Fairfax, orchestrated an investment fraud scheme through a company he established and operated called The Kane Capital Investment Group LLC. The details of Chahal’s fraud were announced Nov. 2 by the U.S. Attorney’s Office for the Eastern District of Virginia.

Chahal carried out his fraud by falsely representing that Kane Capital had earned returns of roughly 28 to 34 percent annually. He actually was suffering substantial losses in managing investors’ funds.

Chahal created falsified brokerage statements to conceal Kane Capital’s losses and siphoned off some of his investors’ funds by transferring the money to accounts he controlled or by spending the funds on personal items.

When investors asked for returns on their investment, Chahal often used money from newer investors to pay disbursements to older investors. He did this without disclosing the practice to his investors.

Chahal pleaded guilty to one count of wire fraud and one count of securities and commodities fraud. He faces a maximum penalty of 20 years in prison on the wire fraud count and 25 years in prison on the securities and commodities fraud count.

Chahal is scheduled to be sentenced on Feb. 8. Actual sentences for federal crimes are typically less than the maximum penalties.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, a special agent in charge of the FBI Washington Field Office’s Criminal Division, announced the details of Chahal’s fraud.

U.S. District Judge Leonie M. Brinkema accepted the plea. Assistant U.S. Attorneys Matthew Burke and Jamar K. Walker are prosecuting the case.

The Virginia State Corporation Commission provided significant assistance with the investigation.