Rajesh Markan Of Hilltop Securities Inc. Barred By SEC For Fraud

Investors potentially experienced sales practice violations by securities broker Rajesh Markan [CRD: 4553309, Dallas, Texas], and United States Securities and Exchange Commission barred him, based on public information on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Markan worked for Merrill Lynch from May 8, 2009, through November 4, 2022, and Hilltop Securities Inc. from October 5, 2022, through August 12, 2024. Continue reading to discover more about the disclosures involving Markan.

SEC Sanctioned Markan For Fraud Relating To Private Equities

Also, on July 16, 2025, the United States Securities and Exchange Commission issued Case No. 3:25-cv-01653 sanctioning Rajesh Markan for alleged fraudulent conduct. Specifically, the SEC permanently prohibited Markan from associating with various securities-industry entities, including brokers, dealers, and investment advisers. Particularly, the SEC alleged that Markan deceived investors through false statements and the misuse of investment funds.

The regulatory action followed a July 9, 2025, consent judgment entered in the United States District Court for the Northern District of Texas. Under that judgment, Markan was permanently enjoined from future violations of certain antifraud provisions of the federal securities laws, including Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5.

According to the SEC, Markan approached approximately 10 brokerage clients located in three states about an alleged private equity opportunity. Those investors reportedly contributed a total of about $2.9 million.

The SEC claimed that Markan represented that the investment was connected to, and advised by, a prominent private equity company based in New York. The regulator further alleged that investors received offering materials that appeared to support those representations.

However, the SEC contended that no such fund actually existed and that the New York company had no involvement with the purported offering. The regulator also alleged that the offering document was not genuine and that a substantial portion of the invested money was diverted for improper purposes.

The disclosure also referenced a related criminal proceeding. On or about March 31, 2025, Markan agreed in writing to plead guilty to one securities fraud charge in United States v. Rajesh Markan, Criminal No. 3:25-CR-145-N.

Merrill Lynch Investor Accused Rajesh Markan Of Misappropriation

Specifically, a Merrill Lynch client filed FINRA Arbitration No. 24-02499 about Rajesh Markan. Mainly, the client alleged that fraud and misappropriation of funds in connection with an investment offered outside the brokerage firm.

The client reportedly claimed that Markan encouraged her to place money into the outside investment and that the transaction resulted in financial harm. As a result, on June 15, 2026, Merrill Lynch settled this matter by paying the client $142,500 in damages.

Markan Disclosed Sales Practice Violation Allegations By Merrill Lynch Client

Additionally, clients of Merrill Lynch disputed Markan’s sales practices by filing FINRA Arbitration No. 25-00323. The clients reportedly maintained that Markan solicited their participation in the investment and that they sustained financial damages as a result of alleged misappropriation. Therefore, Merrill Lynch opted to settle the matter on June 1, 2026, by compensating the clients in the amount of $410,000.

Are You Looking For More Information About Financial Advisor / Securities Broker Rajesh Markan?

Do you have concerns or questions regarding investments you made with Rajesh Markan? You can contact Soreide Law Group online or at (888) 760-6552 and talk with a securities attorney about a potential recovery of your investment losses. Soreide Law Group has recovered losses for investors throughout the US. Also, our securities lawyers handle cases on a contingency fee arrangement and advance all costs. Markan and brokerage firms Markan worked for deny accusations of sales practice violations.