DALLAS (Legal Newsline) — The Securities and Exchange Commission (SEC) has announced it has received a court order to freeze Ash Narayan’s assets after allegations the investment adviser secretly defrauded professional athletes.
According to the SEC, Narayan siphoned more than $33 million from the accounts of athletes he managed and put them into a struggling online sports and entertainment ticket business on whose board he served. The SEC also charged The Ticket Reserve Inc., CEO Richard M. Harmon and chief operating officer John A. Kaptrosky.
Narayan allegedly siphoned money without the approval of his clients. The SEC alleges Ticket Reserve Inc. became dependent on these purportedly fraudulent transactions and would pay Narayan in hidden compensation to keep the money coming.
“We allege Narayan exploited athletes and other clients who trusted him to manage their finances. He fraudulently funneled their savings into a money-losing business and his own pocket,” said Shamoil T. Shipchandler, director of the SEC’s Fort Worth Regional Office. “The asset freeze stops the uncontrolled spending of investor assets within The Ticket Reserve until the case is resolved, preserving money that rightfully belongs to Narayan’s clients.”
The SEC charges all the defendants with violating the anti-fraud provisions of the federal securities law and a related SEC anti-fraud rule, and charges Narayan with violating the Investment Advisors Act of 1940’s anti-fraud provisions.