The Securities and Exchange Commission has charged former broker Surage Kamal Roshan Perera and his company, Janues Capital Incorporated, with engaging in fraudulent activities. The charges relate to allegations that they defrauded at least one investor out of millions of dollars. The SEC alleges that Perera and his firm deceived the investor by lying about investment opportunities and strategies, hiding trading losses, and using funds from other sources to pay the victim the promised returns in a manner similar to a Ponzi scheme. The SEC has obtained immediate relief from the court, including an asset freeze and a temporary restraining order.
Misrepresentation of Investment Opportunities and Strategies
According to the SEC’s complaint, Perera, who resides in Long Island, NY, made false representations to an investor that Janues had access to specific restricted securities at discounted prices through connections with large institutional investors. Additionally, he claimed to exercise a trading strategy referred to as “Options Straddles,” which he said would not only prevent any trading losses but also guarantee returns of up to 9% on some investments with the possibility of returns of 50%. The SEC alleges that Perera and Janues misappropriated at least $3.5 million of the investor’s funds to engage in highly speculative and leveraged trading.
Concealment of Trading Losses
The SEC alleges that Perera concealed the misappropriation and trading losses by providing the investor with fake confirmations and account statements that falsely showed the expected returns. Furthermore, Perera allegedly tried to conceal the losses by using funds received from other sources to make Ponzi-like payments to the investor.
The SEC complaint alleges that Perera and Janues violated anti-fraud provisions of the federal securities laws. The complaint also states that Perera aided and abetted Janues’ alleged violations. Additionally, the complaint names Nishani Alahakoon, whose brokerage account Perera and Janues traded, as a relief defendant.
Parallel Action by U.S. Attorney’s Office
In a parallel action, the U.S. Attorney’s Office for the Eastern District of New York has announced criminal charges against Perera.
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Mark Astarita is a nationally recognized securities attorney, who represents investors, financial professionals and firms in securities litigation, arbitration and regulatory matters, including SEC and FINRA investigations and enforcement proceedings.
He is a partner in the national securities law firm Sallah Astarita & Cox, LLC, and the founder of The Securities Law Home Page - SECLaw.com, which was one of the first legal topic sites on the Internet. It went online in 1995 and is updated daily with news, commentary and securities law related links.