Financial adviser guilty of defrauding investors
Satyen Chatterjee, 65, owner of Strategic Capital Management, defrauded at least five investors of more than $600,000 between 2007 and 2013, district court finds.
Seattle Times business reporter
A Seattle investment adviser pleaded guilty Monday to wire fraud in a U.S. District Court.
Satyen Chatterjee, 65, owner of Strategic Capital Management, defrauded at least five investors of over $600,000 between 2007 and 2013, according to U.S. Attorney Annette Hayes.
Chatterjee had solicited money and property from clients of Strategic Capital Management, and other investors, with promises he would invest it. In some instances, he personally guaranteed the returns even though prosecutors say he didn’t have the money to back up the promise.
Instead, the government said, Chatterjee used the investment to pay off other clients and for personal expenses, which included buying jewelry in India. To cover up the crimes, the prosecutors say, Chatterjee sent out false email status reports and lied to investors when he was unable to repay them.
Chatterjee is a former faculty member at the University of Washington’s Foster School of Business. The Washington Department of Financial Institutions previously revoked his investment advisory registration for Strategic Capital Management in 2013 after he was found to have violated several securities and investment-related laws.
As part of his plea agreement, prosecutors will recommend no more than 63 months in prison for Chatterjee. He faces up to 20 years in prison.
Sentencing is scheduled before U.S. District Judge Thomas S. Zilly on Aug. 20.
Information in this article, originally published May 18, was corrected May 19, 2015. A previous version of this story incorrectly stated U.S. Attorney Annette Hayes’ title.