The SEC charged Satish Appalakutty and his entities, Lorven Funds and Lorven Advisors LLC, alleging that they defrauded at least 100 investors of at least $37 million. According to the SEC’s complaint, from the beginning of 2019 through March 2024, the defendants orchestrated a Ponzi-like scheme in the San Francisco Bay Area, where Appalakutty met and solicited many of his investors through a Hindu temple he attended. As alleged, the defendants misrepresented to investors that they would use their funds to purchase stocks of well-known public companies at a discount, purchase stocks of private pre-IPO companies, or otherwise invest the money to generate returns for investors, and the defendants falsely promised investors minimum rates of return ranging from 8% to 62.5% annually. In reality, however, the SEC’s complaint alleges that the purported investment opportunities were fictitious, and the defendants did not purchase any stocks of public or pre-IPO companies or carry out any investment activity on behalf of investors.