RAJESH MARKAN Charged by SEC

In a litigation release from the Securities and Exchange Commission (SEC) dated June 27, 2025, it was announced that the SEC has filed settled charges against RAJESH MARKAN, formerly a registered representative and investment advisor with MERRILL LYNCH and HILLTOP SECURITIES, for allegedly soliciting his brokerage customers to invest in a fake private equity fund.

According to the SEC’s complaint, from approximately 2015 - July 2024, RAJESH MARKAN, while working as a registered representative, allegedly solicited approximately ten of his brokerage customers to invest approximately $2.9 million in an investment he called the “Intrinsic Value Portfolio.” Markan falsely claimed the fund was advised by a prominent New York-based private equity firm and promised his customers above market returns for investors willing to lock up their capital for 6 to 12 years. However, the SEC alleges no such fund ever existed. Investigators say RAJESH MARKAN allegedly misappropriated most of the funds for personal use and fabricated faked client statements and a domain name presenting himself as an employee of the New York private equity firm allegedly to maintain the illusion of legitimate investments.

According to an InvestmentNews article, the SEC's enforcement action follows parallel criminal charges filed by the US Attorney’s Office in the Northern District of Texas, to which RAJESH MARKAN pleaded guilty earlier in June. In a settlement with the SEC that is still pending court approval, Markan agreed to be permanently enjoined from violating antifraud provisions. Monetary penalties, including disgorgement and prejudgment interest, will be determined at a later date.

According to FINRA’s BrokerCheck, RAJESH MARKAN was permanently barred by FINRA in October of 2024.  Markan was with MERRILL, LYNCH, FENNER, PIERCE & SMITH INC of Flower Mound, Texas, from 05/08/2009 - 11/04/2022, then HILLTOP SECURITIES INC of Dallas, Texas, from 10/05/2022 - 08/12/2024.

According to the October 2024 FINRA report, the allegations barring Markan were as follows, “Without admitting or denying the findings, Markan consented to the sanction and to the entry of findings that he refused to provide documents and information requested by FINRA as a part of its investigation into the circumstances giving rise to a Form U5 filed by his member firm. The findings stated that the Form U5 disclosed that Markan was under internal review at the firm for fraud or wrongful taking of property, or violating investment-related statutes, regulations, rules or industry standards of conduct.”

RAJESH MARKAN had been in the securities industry for 21 years and was listed with 5 firms, according to FINRA's BrokerCheck.  Markan has 11 disclosures on his FINRA CRD report. Nine of the disclosures are “Customer Disputes” seeking damages from $33,119.30 to $1,200,000.00. Several of the allegations listed were as follows, “Client alleges that he was solicited by his Financial Advisor to invest in an outside investment that was fraudulent. He also alleges misappropriation of funds.”

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