The complaint, filed on April 15, 2026, in case number 5:26-cv-03203, accuses Nambiar of falsely representing himself as a successful securities trader who could generate annual returns of 20% to 40%. Instead, the SEC alleges Nambiar suffered approximately $21 million in trading losses over the course of the scheme, which ran from November 2018 through May 2024.
Nambiar solicited investments through online Telegram chatrooms and his network within the Indian American community, promoting entities he controlled including Spartan Trading Inc. and Spartan Trading Capital Management, LLC. He pooled investor funds into bank accounts and used the money to make "Ponzi-like" payments to existing investors, pay off high-interest loans from cash advance companies, and cover personal expenses.
To deceive investors, Nambiar provided false account statements, charts, and Excel spreadsheet excerpts purporting to show profitable trades. He also made false claims about his monthly, quarterly, and yearly profits, despite having never had a profitable year during the five-year period. One brokerage firm sent him warning letters in 2022 and 2023 regarding substantial losses, but he continued to trade and solicit funds.
In addition to the $43 million scheme, the SEC alleges Nambiar ran a related private fund offering between late 2020 and April 2021 that raised approximately $900,000 from nine investors. The complaint states Nambiar omitted material information about his ongoing Ponzi scheme and significant trading losses. The Spartan Fund collapsed within months after Nambiar executed numerous unprofitable trades.
The SEC is seeking permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil monetary penalties. The agency also seeks an order prohibiting Nambiar from participating in the issuance, purchase, offer, or sale of any security, and permanently enjoining him from acting as or being associated with an investment adviser.
The complaint alleges violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5; Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933; and Section 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8. The SEC asserts that the securities offered were unregistered investment contracts and that Nambiar engaged in general solicitation without requiring investors to be accredited.