Broker Fraud Law Firm

The Shepherd Smith Edwards and Kantas Broker Fraud Law Firm Continues To Investigate Investor Losses Involving Ex-Hilltop Securities Broker Rajesh Markan. 

SEC Bars Ex-Texas Financial Advisor Who Pleaded Guilty Over Pony Private Equity Investments

If you are an investor who suffered losses while working with now convicted former Dallas financial advisor Rajesh Markan, please contact Shepherd Smith Edwards and Kantas (investorlawyers.com) today. Our Texas securities law firm represents investors in recouping losses caused by broker misconduct or negligence.

According to Rajesh Markan’s CRD, he worked for 21 years in the brokerage industry. Most recently, he was a Hilltop Securities registered representative from 2022 to 2024. Before that, he was with Merrill Lynch from 2009 to 2022. He was allowed to resign from that firm following allegations that he did not disclose a loan to a client.

At least nine investment loss recovery claims have already been brought by his former customers. Most of the requests for damages are in the six- and seven-figures and involve an outside investment that was fraudulent. Clients are also alleging misappropriation.

Earlier this year, Markan pleaded guilty to one count of criminal fraud over selling $2.9M in bogus private equity investments to clients in a years-long scam from 2015 to 2024—the same period he was a broker with Merrill Lynch and then at Hilltop Securities. Earlier this month, the US Securities and Exchange Commission (SEC) permanently barred Markan, who was also an investment adviser. The regulator’s civil case against him is pending.

The private equity scam involved a supposed fund called Intrinsic Value Portfolio. Investors were told that their money would be tied up for six to 12 years, but that they could expect above-market gains. These were misrepresentations, and the fund was fake. Meanwhile, Markan misappropriated investors’ money even as he sent out fabricated account statements.

In October 2024, the Financial Industry Regulatory Authority (FINRA) barred Rajesh Markan from the brokerage industry.

Private equity funds—even when not fraudulent—can be risky investments. It is important that your broker only recommend this type of investment for you if it is a suitable fit given your investing profile, financial goals, and risk tolerance level.

Recently, a FINRA arbitration panel ordered Merrill Lynch to pay two customers $3.7M for losses they sustained in private equity feeder funds. The claimants alleged unsuitability, misrepresentations, and more.

What Should You Do If You Sustained Losses While Working With Broker or Investment Adviser Rajesh Markan? 

You may be able to pursue damages from Markan and/or the broker-dealer where he was registered with at the time. Even if Hilltop Securities or Merrill Lynch were unaware of their financial advisor’s fraudulent actions, it is their duty to properly oversee customer accounts and protect customers’ assets.

Your first step is to determine whether you have grounds for an investor lawsuit, which is where we can help. During your free, no-obligation case assessment, we will evaluate the cause of your losses.

Shepherd Smith Edwards and Kantas has been fighting for investors for 35 years. We are skilled at maximizing each client’s chances for a full recovery. More than 90% of the investors we have represented received full or partial financial recovery in arbitration, mediation, or litigation with our help.

Contact Our Broker Fraud Law Firm

Call (800) 259-9010 or fill out this form.