Travis Kelce, husband of American pop star Taylor Swift, was among 64 people defrauded in a large Ponzi scheme operated by Indian-origin businessman Siddharth Jawahar, which collected more than USD 35 million (around Rs 336 crore), according to proceedings in a US federal court.
Kelce, 36, who is a tight end for the Kansas City Chiefs in the National Football League (NFL), was named as a victim during Jawahar's sentencing hearing in a federal court in St Louis on Tuesday.
Jawahar, 38, had been residing in the US without legal status. He was sentenced this week to 11 years in federal prison after pleading guilty to three charges of wire fraud. He was also directed to pay USD 31.35 million (around Rs 301 crore) in restitution to those affected by the scheme.
Prosecutors did not reveal details about Kelce's participation in the investment scheme or state how much money he had invested. It also remains unknown whether Kelce suffered any financial loss. A 2021 Forbes report had previously named Kelce as an investor in a fund set up by Jawahar's company, Swiftarc.
The US Attorney's Office said the scheme had 64 victims in total.
Kelce married Swift during a high-profile ceremony at New York's Madison Square Garden on July 3.
ABOUT THE PONZI SCHEME
Jawahar operated Texas-based investment firm Swiftarc Capital LLC. According to prosecutors, he told investors that their funds would be spread across investments in multiple companies. Instead, he ultimately placed almost all of the investors' money into one overseas investment, Philip Morris Pakistan.
After that investment lost value, prosecutors said Jawahar hid the losses while continuing to assure clients that their investments were making money. He subsequently used funds received from newer investors to pay earlier investors, which is the characteristic structure of a Ponzi scheme.
Between July 2016 and December 2023, Jawahar received more than USD 35 million (around Rs 336 crore) from investors but put only about USD 10 million (around Rs 96 crore) into investments, prosecutors said.
A portion of the remaining funds was used to repay earlier investors, while other money financed what prosecutors described as an extravagant lifestyle. This included private jet trips, luxury hotels, expensive apartments, private club memberships, shopping and costly outings.
Jawahar was indicted in December 2023 and pleaded guilty in January to three counts of wire fraud. Prosecutors had initially also accused him of investment adviser fraud, but that charge was dropped under the plea agreement.
Court records state that Jawahar is originally from India and had been living in the US without legal status since 2005. Fox News also reported that he had been residing in the country without legal status.
Following his indictment, prosecutors accused Jawahar of trying to obstruct the investigation. They alleged that he attempted to coach a victim into providing the FBI with a favourable statement, made false claims regarding his immigration status and finances, and instructed his sister to remotely erase his iPhone in an attempt to destroy evidence.
Prosecutors further alleged that Jawahar spent investors' money on personal expenses. Court filings listed expenditures on private aircraft, luxury accommodation and memberships at exclusive private clubs.
US District Judge Zachary M Bluestone sentenced Jawahar to 11 years behind bars and ordered him to pay USD 31.35 million (around Rs 301 crore) in restitution. The judge pointed to the size of the financial losses and the length of the fraud, while also noting that Jawahar had yet to begin compensating his victims.
Kelce's representatives have not publicly stated how much he invested or whether he personally lost money. His name appears in the case only as that of a victim, and there are no allegations of wrongdoing against him.
