SEC Combats Scourge of Affinity Fraud With Proactive Experiment

Sanjay Singh pitched an investment in his Florida trucking company as a path for the middle class to achieve the American dream.

Money would be used to expand his fleet and build out the company’s operations, with investors guaranteed to make returns of 12.5% to 325%, the pitch went, according to authorities.

“We take the risk, we take the liability, you enjoy the investment,” he said in a 2023 promotional video, “Driving American Dream.” “That is our business model.”

Singh’s company, Royal Bengal Logistics, took in $112 million before the Securities and Exchange Commission shut it down, alleging Singh ...