Gopala Krishnan, CEO of Nanban Ventures, faces serious allegations of running a Ponzi scheme that defrauded investors of over $130 million. The Securities and Exchange Commission (SEC) has intervened, freezing the company’s assets and halting further fraudulent activities.

Nanban Ventures’ Alleged Ponzi Scheme

Nanban Ventures allegedly promised high returns on investments, luring over 1,000 investors with grandiose claims of outperforming the S&P 500 Index. However, the SEC’s investigation suggests that the company was operating as a classic Ponzi scheme, using new investors’ funds to pay off earlier ones.

Gopal Krishnan: CEO Under Fire

Gopala Krishnan, the mastermind behind Nanban Ventures, maintains his innocence, denying any wrongdoing. Despite his denial, the SEC’s investigation alleges that Krishnan and his associates personally pocketed $6 million from the alleged scheme.

SEC’s Intervention Halts Scheme

To protect investors from further harm, the SEC has obtained an emergency relief, freezing Nanban Ventures’ assets and halting any further dealings with the company. The SEC is now actively investigating the scheme and seeking to recover investor funds.

Investor Caution Urged

In light of the allegations against Gopal Krishnan and Nanban Ventures, investors are urged to exercise caution before investing in any ventures associated with these entities. The SEC’s ongoing investigation underscores the importance of thoroughly researching investment opportunities and understanding the risks involved.