SEC Says Adviser Ran $11 Million Ponzi

CHICAGO (CN) – Investment adviser Neal V. Goyal has run an $11.4 million Ponzi scam for 8 years, “stealing his investors’ money to fund his own lavish lifestyle,” and paying expenses for his bar and his wife’s clothing boutiques, the SEC claims in court.
     The SEC sued Goyal, 33, of Chicago, his two companies, Caldera Advisors and Blue Horizon Asset Management, in Federal Court. It also sued his third company, Caldera Investment Group, as a relief defendant.
     “This case arises from a long-running fraud perpetrated by investment adviser Neal
     V. Goyal,” the lawsuit states. “Since 2006, Goyal has raised more than $11.4 million from at least 35 persons who believed they were investing in one of four investment funds under Goyal’s control. While he represented that the funds invested in equities and significantly outperformed the market, Goyal never invested the vast majority of the money he raised from investors, and the limited trading that Goyal did perform was unsuccessful and resulted in significant losses. Goyal disguised his fraud by sending investors fictitious account statements grossly overstating his performance and, in Ponzi-scheme fashion, by using later investors’ money to meet the distribution requests of prior investors. All the while, Goyal was stealing his investors’ money to fund his own lavish lifestyle, to pay business expenses, and to support a variety of personal business ventures including a bar and two children’s clothing boutiques that his wife operates in Chicago.”
     The SEC seeks disgorgement, penalties and an injunction.

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