Rajesh Markan

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26564 / June 12, 2026

Securities and Exchange Commission v. Rajesh Markan, No. 3:25-cv-01653 (N.D. Tex. filed June 27, 2025)

SEC Obtains Final Judgment as to Former Registered Representative Charged with Defrauding Customers

On June 1, 2026, the United States District Court for the Northern District of Texas entered a final judgment as to Rajesh Markan in connection with the SEC’s civil enforcement action against him.

According to the SEC’s complaint, from at least 2015 through July 2024, Markan, while working as a registered representative of two dually-registered broker-dealers and investment advisers, solicited approximately ten of his brokerage customers to invest, collectively, approximately $2.9 million in a purported private equity fund. The complaint alleged that Markan told investors that a well-known New York private equity firm advised the fund and that their money would be tied up for six to twelve years, but he assured them that, ultimately, they could expect to make above-market returns. As alleged, none of these representations were true: the fund was fake and never existed, there was no association with the New York private equity firm, and Markan misappropriated most of the investors’ money for himself. 

The final judgment, which follows the Court entering a bifurcated judgment as to the defendant on July 9, 2025, permanently enjoins Markan from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and permanently enjoins Markan from participating in the issuance, offer, purchase or sale of any security except for purchases or sales for his own personal accounts. In addition, the final judgment orders Markan liable for disgorgement in the amount of $2,305,025 and prejudgment interest in the amount of $132,776.15, with payment of those amounts deemed satisfied by the restitution of $2,445,000 ordered against Markan in a parallel criminal case, United States v. Rajesh Markan, Crim. No. 3:25-cr-145-N (N.D. Tex.).

The SEC’s investigation was conducted by Robert Boudreau and Keith Hunter of the SEC’s Fort Worth Regional Office. The SEC’s litigation was led by Tyson Lies and supervised by Keefe Bernstein. The SEC appreciates the assistance of FINRA, the FBI, and the U.S. Attorney’s Office for the Northern District of Texas.