Kansas City Chiefs tight end Travis Kelce is among the victims of a Ponzi scheme that took in more than US$35mil from unsuspecting investors, a Missouri prosecutor said.
The prosecutor mentioned Kelce in court on Sept 15 as 38-year-old Siddharth Jawahar was sentenced to 11 years in prison. The US Attorney’s Office of the Eastern District of Missouri said Jawahar pleaded guilty to three counts of wire fraud in US District Court in St Louis in January.
He also was ordered to pay US$31.35mil in restitution.
Television station KMOV reported that the prosecutor brought up Kelce’s name without further comment. It is not known when Kelce made the investment or how much he spent.
According to a news release from the US Attorney’s Office, Jawahar ran a Texas-based investment company, Swiftarc Capital LLC, that in 2015 began taking money from investors. He put all of the money he accepted into a single investment, which dropped in value.
He did not notify investors of the loss, told them they were making money, and took money from new investors to repay the earlier investors.
He also used the investment funds to support what prosecutors called “an extravagant lifestyle” filled with private jets, luxury living, elegant dining and memberships in private clubs.
Jawahar was given more than US$35mil but invested only about US$10mil from July 2016 through December 2023, per the news release.
Kelce, 36, likely is not the only athlete involved in the Ponzi scheme.
A 2021 article in Forbes about the growing financial portfolio of NBA guard Gary Harris incorporated several comments from Harris about his investments, which included Swiftarc Ventures Labs Fund.
Jawahar was the co-founder and managing partner, and Harris also spoke of how much he had learned from Jawahar.
The Forbes article mentioned other athletes who had invested, naming Kelce and basketball players Tim Hardaway Jr and Mason Plumlee.
Kelce, Hardaway and Harris all have career earnings in excess of US$111mil, according to Spotrac.
In July, Kelce married pop star Taylor Swift, who had a net worth of US$2.1bil on the day of their wedding, according to Forbes. – Reuters
