Travis Kelce Named Victim in $35M Swiftarc Capital Ponzi Scheme
Chiefs tight end Travis Kelce was named a victim in a $35M Ponzi scheme run by Siddharth Jawahar of Swiftarc Capital, who was sentenced to 11 years in prison.
Kansas City Chiefs tight end Travis Kelce has been named in federal court as a victim of a Ponzi scheme that pulled in more than $35 million from investors, according to prosecutors in the Eastern District of Missouri.
What happened in court
The 36-year-old Kansas City Chiefs star tight end was named during court proceedings on Tuesday, Sept. 15. Siddharth Jawahar, 38, who ran Texas-based Swiftarc Capital LLC, received an 11-year prison sentence. US District Judge Zachary M. Bluestone also ordered him to pay $31.35 million in restitution.
Jawahar pleaded guilty in January to three counts of wire fraud. The $35 million figure represents money collected from investors overall, not Kelce’s personal loss. The amount Kelce invested or lost has not been disclosed.
How the scheme worked
Jawahar was behind a Texas-based investment company called Swiftarc Capital LLC. In 2015, he began investing client funds in a single investment, Philip Morris Pakistan (PMP), and eventually 99% of client funds were consolidated into PMP.
When that investment declined, he concealed the losses and falsely told investors they were making profits. He used incoming investors’ money to repay earlier investors and support luxury spending, including private jets, hotels, apartments, private clubs, and expensive restaurant outings.
From about July 2016 through December 2023, Jawahar took in more than $35 million from investors, but he only invested around $10 million.
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Kelce wasn’t the only athlete tied to Swiftarc
A 2021 article in Forbes about the growing financial portfolio of NBA guard Gary Harris incorporated several comments from Harris about his investments, which included Swiftarc Ventures Labs Fund. Jawahar was the co-founder and managing partner, and Harris also spoke of how much he had learned from Jawahar. The Forbes article mentioned other athletes who had invested, naming Kelce and basketball players Tim Hardaway Jr. and Mason Plumlee.
Kelce’s exact losses were not disclosed, and prosecutors made clear he was a victim, not accused of any wrongdoing.
Obstruction attempts after indictment
After his indictment, Jawahar attempted to obstruct justice by goading one of his victims into making favorable testimony to the feds and trying to get his sister to remotely wipe his cellphone, according to the U.S. attorney statement.
The FBI and the Manhattan District Attorney’s Office in New York investigated the case, while Tuesday’s sentencing hearing took place in St. Louis.
Options market and stocks to watch
The scheme centered on a concentrated bet on Philip Morris Pakistan, which sits under the broader tobacco umbrella. A few names worth watching in the wake of the story:
PM: Philip Morris International is the parent tied to the Philip Morris Pakistan exposure at the center of the fraud. Watch for any incremental headline risk or subsidiary chatter.
MO: Altria trades in sympathy with tobacco sector flows and headlines. Watch for correlated moves if the story gets legs.
BTI: British American Tobacco is another peer to monitor for sector reaction.
For traders, the broader takeaway is a reminder about concentration risk in private funds marketed to high-net-worth clients, including pro athletes. See more coverage on Unusual Whales news.
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