Cease-and-Desist and Bar Order Entered Against Investment Adviser on Charges of Fraudulently Inflated AUM

Respondent was found to have caused his company, Simran
Capital Management, to issue materially false and misleading overstatements about its assets under management (including in Forms ADV). When responding to a 2008 request for proposal from the CalPERS, respondent allegedly ignored its minimum selection qualifications and instead falsely certified that Simran managed more than $200 million in assets, though it actually managed only approximately $80 million at the time. Simran was selected as an adviser by CalPERS based on that certification. Subsequently, respondent made or caused to be mad similar overstatements to 14 other potential clients.