California Day Trader Duped More Than 400 Investors, SEC Says

A California day trader ran a $43 million Ponzi-like scheme that defrauded more than 400 investors nationwide, the SEC said.

Sudheesh Nambiar from Milpitas, Calif., carried out the scheme through his “Spartan Trading” investment business from November 2018 through May 2024, according to the Securities and Exchange Commission’s complaint filed Wednesday in the US District Court for the Northern District of California.

The SEC also alleges Nambiar fraudulently raised $900,000 from nine investors in a separate private fund from late 2020 to April 2021.

Nambiar promised investors annual returns of 20% to 40%, claiming he would use their pooled funds ...