The SEC charged Rajesh Markan with fraud in the sale of a fictitious PE fund. The SEC's complaint alleged that during the relevant period, Markan made false and misleading statements and engaged in a fraudulent scheme to deceive in connection with the offer and sale of securities while working as a registered representative and investment adviser representative of two dually registered broker-dealers and investment advisers. Markan solicited approximately ten of his brokerage customers from three separate states to invest, collectively, approximately $2.9 million in a purported private equity fund. Markan falsely told the investors that a well-known New York private equity firm advised the fund and provided investors a sham prospectus to describe the offering. In reality, the fund did not exist, the fund was not associated with the New York private equity firm, and Markan misappropriated most of the investors’ money. Markan was barred from the securities industry and pled guilty in a related criminal action.