Chicago Investment Advisor Umesh Tandon Charged for Investment Fraud
A Chicago-based investment advisor has been charged with lying to his clients, including the California Public Employees’ Retirement System (CalPERS), about the amount of money managed by his firm.
According to the SEC, Umesh Tandon, an adviser with Chicago-based Simran Capital Management, used false information to obtain the business of several institutional investors, including CalPERS. Specifically, Tandon has been accused of falsely claiming that Simran satisfied the clients’ minimum assets under management (AUM) requirements.
AUM is a method used by institutional investors to screen potential advisory firms.
Umesh Tandon allegedly misled CalPERS into investing with Simran by claiming Simran managed $200 million in assets when it really managed only $80 million. Tandon then allegedly used Simran's business relationship with CalPERS and more lies about Simran's assets under management (AUM) to attract additional institutional investors.
Simran ceased operating as an investment adviser in Feb. 2012, after submitting at least four filings with the SEC that overstated the firm’s AUM. Tandon, though neither admitting nor denying the SEC’s allegations, has agreed to settle the SEC’s charges.