Tim Hardaway Jr. was among the high-profile investors connected to an investment manager now facing federal charges in an alleged $35 million Ponzi scheme, adding another prominent name from the sports world to a case that has drawn attention after NFL star Travis Kelce was identified as one of the alleged victims.
NBA players Gary Harris and Mason Plumlee were also reported as investors, though it has not been confirmed whether Hardaway Jr., Harris, or Plumlee were among those identified as victims in the fraud case against Siddharth Jawahar. Kelce, who has won three Super Bowls and earned more than $100 million during his NFL career, was among the wealthy clients allegedly targeted by the investment operation.
Swindled
Jawahar, the 38-year-old founder of Texas-based Swiftarc Capital LLC, was sentenced to 11 years in federal prison on Tuesday, Sept. 15.
The Justice Department also ordered him to pay $31.35 million in restitution after pleading guilty to three counts of wire fraud.
Federal prosecutors said Jawahar collected more than $35 million from 64 investors between July 2016 and December 2023. However, he invested only about $10 million.
Kelce was identified as one of Jawahar’s victims during the federal sentencing hearing in St. Louis. The Kansas City Chiefs tight end reportedly invested in the Swiftarc Venture Labs Fund, although the amount he committed and his ultimate loss have not been publicly disclosed.
The revelation comes during a year of major spending for Kelce. He and Taylor Swift married at Madison Square Garden on July 3 in a lavish ceremony that Forbes estimated cost upward of $20 million.
Swift’s estimated $2 billion fortune places the couple in a financial league occupied by few entertainers or athletes. Kelce also purchased a $5.35 million lakefront estate in Bratenahl, Ohio, in March, several months before the wedding.
Kelce was not the only professional athlete connected to Jawahar’s business. NBA players Gary Harris, Tim Hardaway Jr. and Mason Plumlee were previously identified as Swiftarc investors. Public records have not established how much each player invested or whether each suffered losses from the criminal scheme.
Attorney Chase Carlson told Inc. that athletes are particularly exposed because their compensation is public knowledge. A wealthy physician or private business owner may have similar assets, but their finances are generally less visible.
The financial facade rested on a single, dangerously concentrated gamble.
Federal prosecutors revealed that Jawahar placed 99% of Swiftarc’s invested capital into Philip Morris Pakistan. As the stock tumbled, he concealed catastrophic losses by distributing falsified account statements that showed artificial gains.
Jawahar then used money from newer investors to satisfy withdrawal requests from earlier clients. Other funds allegedly financed luxury apartments in Austin, Texas and Manhattan, private jet travel, shopping, dining and lavish outings.
U.S. District Judge Zachary Bluestone described the losses as “enormous.” One victim said Jawahar had “weaponized” the personal trust placed in him.
The case became even more troubling after Jawahar was indicted. Authorities said he coached one victim to provide the FBI with a favorable account, lied about his immigration status and asked a relative to erase his iPhone remotely.
Jawahar’s attorney told ABC News, “Sid Jawahar is a very good man, who has made some very serious mistakes and is taking ownership of all of it.”
The $31.35 million restitution order represents nearly 90% of the money raised. However, a court order does not guarantee the victims will recover their money quickly.
For Kelce and the other athletes linked to Swiftarc, the case delivers a costly lesson. Fame may provide access to exclusive investments, but it also places a bull’s-eye on every publicly reported dollar.
