SEC charges Fair Invest and Khalid Parekh for misconduct in $18.5M securities offering
ments to short-term crypto-asset lending on two crypto-trading platforms, never holding any WBA assets in a SIPC-insured account. Fair Invest also failed to disclose conflicts of interest that arose because a firm affiliate retained a share of the earnings generated from the crypto-asset transactions and because Parekh held an equity interest in one of the crypto-trading platforms.
During the SEC’s investigation, Fair Invest returned the investors’ principal, plus dividends, and withdrew its registration with the SEC as an investment adviser. The order finds that Fair Invest and Parekh violated securities-registration and anti-fraud provisions of the Securities Act of 1933 and the Investment Advisers Act of 1940.
Without admitting or denying the SEC’s findings, Fair Invest and Parekh consented to the entry of an order imposing a cease-and-desist order and a censure against each of them, along with a civil money penalty of $100,000 to be paid jointly and severally.
It is crucial for investors to be aware of the risks associated with investment opportunities and to conduct thorough research before committing funds. Always remember to verify information provided by financial advisors, and if something seems too good to be true, it may be worth investigating further. Stay informed and stay safe in your investment decisions.
