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Sunday, July 14, 2024 | Back issues
Courthouse News Service Courthouse News Service

SEC Sues Bay Area Exec for $900,000

SAN FRANCISCO (CN) - A Palo Alto investment consultant resold $900,000 worth of stock that he'd already sold to other people, the SEC claims in court.

The SEC sued Vinay Kumar Nevatia on Tuesday in Federal Court.

Kumar - and eight of his aliases - are the only defendants in the lawsuit.

Kumar owned "several now-defunct investment entities," the SEC says, and "went to great effort to conceal his double-dealing."

First, he raised money from investors to buy shares of privately held CSS Corp. Technologies, according to the complaint. Three years later, he started reselling the shares, "which belonged to the original investors," without telling them, the SEC says.

After taking the money by wire transfer from his new suckers, the SEC says, "He lied to CSS's transfer agent, saying that new stock certificates should be issued to the new buyers and that the original stock certificates had been lost. Even after fraudulently selling their shares, Kumar deceived the original CSS investors into thinking that they still held them. He then absconded with the proceeds belonging to the original eight investors."

Kumar, 46, lived in Palo Alto from 2004 until 2013, the SEC says. His businesses included KBR Capital Markets, LLC; KBR Capital Partners, Inc.; KBR Capital Partners, LLC; and KBR Fund, LP, which he operated out of offices in San Mateo County and his home.

The SEC seeks disgorgement, penalties and an injunction.

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