Court granted SEC’s request for emergency relief and asset freezes
FOR IMMEDIATE RELEASE 2023-118
Washington D.C., June 26, 2023 —
The Securities and Exchange Commission today announced charges against Broward County, Florida resident Sanjay Singh and his trucking and logistics company, Royal Bengal Logistics Inc., with fraudulently raising approximately $112 million from as many as 1,500 investors through an unregistered securities offering that primarily targeted Haitian-Americans.
The Securities and Exchange Commission (SEC) has filed a complaint accusing Singh and his company, Royal Bengal Logistics Inc., of engaging in fraudulent investment practices between 2019 and 2023. Singh allegedly offered high-yield investment programs to investors, claiming guaranteed returns ranging from 12.5 to 325 percent. These programs were presented as a means to expand the company's operations and increase its fleet of semi-trucks and trailers. Singh and Royal Bengal assured investors that their investments were safe and that the company generated significant monthly revenue, reportedly up to $1 million. However, the SEC alleges that Royal Bengal operated at a loss and used approximately $70 million of new investor funds to pay earlier investors, resembling a Ponzi scheme.
The complaint further asserts that Singh misappropriated at least $14 million of investor funds for personal use and for individuals who did not provide any legitimate services in exchange. Additionally, he diverted more than $19 million of investor funds to two brokerage accounts under his control, engaging in speculative equities trading on margin, resulting in losses exceeding $1 million of investor money.
Eric I. Bustillo, Director of the SEC's Miami Regional Office, stated, "Singh targeted members of the Haitian-American community, deceiving them with a Ponzi-like scheme to enrich himself. We are determined to hold individuals like Singh accountable for preying on investors through deception."
The SEC's complaint, filed in the U.S. District Court for the Southern District of Florida, accuses Singh and Royal Bengal of violating federal securities laws concerning registration and anti-fraud provisions. Additionally, relief defendants Sheetal Singh and Constantina Celicourt, spouses of Sanjay Singh and Royal Bengal Logistics's Vice President of Business Development, respectively, have been named in the complaint. The District Court has granted the SEC's emergency relief requests, which include preliminary injunctive relief, asset freezes, the appointment of a Receiver, and an order preventing the destruction of documents. The SEC seeks an officer and director bar against Singh, permanent injunctions, civil money penalties, and disgorgement of ill-gotten gains with prejudgment interest for both defendants and relief defendants.
The SEC's Office of Investor Education and Advocacy, along with the Division of Enforcement's Retail Strategy Task Force, has issued an Investor Alert providing tips on how investors can avoid making investment decisions solely based on common ties with individuals recommending or selling investments.
The SEC appreciates the assistance of Florida’s Office of Financial Regulation, the U.S. Attorney’s Office for the Southern District of Florida, the FBI’s Miami Field Office, and the U.S. Department of Transportation, Office of Inspector General, Southern Region.
The SEC’s investigation was part of the Miami Regional Office’s Fraud Against Minority Groups Initiative and was conducted by Linda S. Schmidt and supervised by Sean M. O’Neill and Glenn Gordon, with the assistance of Mark Dee, Fernando Torres, and Ivette Goizueta-Mendes. The SEC’s litigation will be led by Russell O’Brien, and supervised by Teresa J. Verges.