Rajesh Markan Sanctioned By SEC, Involved In Merrill Lynch Client Arbitrations

Investors reportedly complained about securities broker Rajesh Markan [CRD: 4553309, Flower Mound, Texas], according to disclosures on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Markan worked for Merrill Lynch from May 8, 2009 to November 4, 2022, and for Hilltop Securities Inc. from October 5, 2022 to August 12, 2024. Read on to know more about the disclosures and regulatory actions involving Rajesh Markan.

SEC Bars Markan For Misappropriation

Evidently, on July 16, 2025, United States Securities and Exchange Commission (SEC) issued Case: 3:25-cv-01653 sanctioning Rajesh Markan. Specifically, SEC permanently barred Markan in multiple capacities, including as a securities broker and financial advisor.

The regulatory action stems from a final judgment entered on July 9, 2025, by consent, against Rajesh Markan in a civil action filed by the SEC in the United States District Court for the Northern District of Texas. The Commission’s complaint preceding that judgment alleged that Markan, while operating as a registered representative and investment adviser representative at Merrill Lynch and Hilltop Securities Inc., orchestrated a scheme involving the solicitation of approximately 10 investors across three states.

According to the SEC, Markan falsely claimed that a private equity firm was advising a private equity fund in which he was soliciting investments. He purportedly distributed a fake prospectus describing the offering to investors, which led to approximately $2.9 million in investor contributions. SEC claimed that the fund did not exist and that Markan misappropriated investors’ money. Allegedly, the fund was also not associated with the claimed private equity firm.

On March 31, 2025, Markan agreed to plead guilty to securities fraud. This plea was entered before the United States District Court for the Northern District of Texas, in a criminal case titled United States v. Rajesh Markan, Crim. No. 3:25-CR-145-N.

Merrill Lynch Investor Accused Rajesh Markan Of Misappropriation Of Funds

Also, on February 18, 2025, a Merrill Lynch client filed FINRA Arbitration No. 25-00323 about Rajesh Markan. Supposedly, Markan misappropriated funds and solicited investments in an outside investment that was not real. Because of this, the client allegedly sustained damages relating to hedge funds. So, the client requested $500,000 in compensation from Merrill Lynch or Markan. It appears that this arbitration is awaiting a resolution.

Rajesh Markan Disclosed Unauthorized Transactions Allegations By Merrill Lynch Client

In addition, a client of Merrill Lynch contested Rajesh Markan’s sales practices in FINRA Arbitration No. 24-02499 on November 25, 2024. Allegedly, Markan misappropriated funds and solicited investments in an illegitimate hedge fund. Therefore, the client seeks compensation from Merrill Lynch or Markan in the amount of $300,000 in this ongoing matter.

Hilltop Securities Investor Accused Markan Of Misappropriation Of Funds

Specifically, on October 23, 2024, a Merrill Lynch client filed FINRA Arbitration No. 24-02289 about Rajesh Markan. Notably, this client’s allegations mirror those of the other clients. Because of alleged misappropriation, the client allegedly experienced damages. Therefore, the client requested $1,200,000.00 in compensation from Merrill Lynch or Markan. Evidently, this arbitration is pending a resolution.

Rajesh Markan Disclosed Solicitation Allegations By Merrill Lynch Client

Additionally, a client of Merrill Lynch disputed Rajesh Markan’s sales practices by filing FINRA Arbitration No. 24-02147 on October 7, 2024. Mainly, the investor alleged that Markan solicited the client’s funds for a phony investment. So, the client seeks compensation from Merrill Lynch or Markan in the amount of $500,000.00 in this ongoing matter.

Merrill Lynch Investor Accused Markan Of Failure To Follow Instructions

Also, a client filed a complaint about Rajesh Markan. Allegedly, Markan failed to follow instructions by not investing funds as directed in October 2021. Because of this, the client allegedly sustained damages relating to over-the-counter equities. Consequently, on February 18, 2025, Merrill Lynch settled this matter by paying the client $33,119.30 in damages.

Were You Impacted By Securities Broker / Financial Advisor Rajesh Markan?

Did you suffer losses because of Rajesh Markan? If so, contact Soreide Law Group at (888) 760-6552 or online. Speak with a securities lawyer concerning a potential recovery. For years, Soreide Law Group has helped to recoup losses for investors located within the US. Also, the firm handles cases on a contingency fee basis and advances the costs. Markan and brokerage firms Markan worked for deny accusations of sales practice violations.