Texas investment manager illegally misappropriated $18.5 million of client funds to invest in cryptocurrencies, SEC intervenes in investigation

Odaily News According to the SEC announcement, Texas investment manager Khalid Parekh illegally invested $18.5 million of client funds in cryptocurrencies without client consent, and promised an annualized return of 4%. Parekh attracted 373 investors from 40 states through his company Fair Invest between August 2021 and August 2022, mainly targeting the American Muslim community, and claimed that his investments were in compliance with Islamic law. In fact, he allocated client funds to two cryptocurrency lending platforms instead of traditional assets. During the SEC investigation, Parekh returned the client's principal and 4% of the promised return, paid a $100,000 fine, and revoked his investment advisor registration.