‘Prodigy’ financial trader indicted for $5M Ponzi scheme in Kentucky
A “prodigy” financial trader from California has been indicted in Kentucky on multiple counts of wire fraud and money laundering after prosecutors say he stole more than $5 million from at least one client in a Ponzi scheme.
Mihir Deepak Sukthankar, 23, was indicted in federal court Aug. 7 on five counts of wire fraud, conspiracy to commit money laundering and conspiracy to commit fraud.
Sukthankar was charged alongside Dylan Bryce Baker, an entrepreneur tasked with recruiting potential investors for Sukthankar.
Sukthankar was previously featured in business and lifestyle publications including Forbes and L’Officiel Monaco, which labeled him a prodigy.
From his home in California, Sukthankar solicited clients in Kentucky and convinced them to place large amounts of money into his accounts, according to the indictment.
The clients thought the money would be used for trades and other investments, but Sukthankar instead spent much of it on personal expenses and repaying earlier investors.
Sukthankar created a password-protected online portal for clients that showed inflated account balances, according to prosecutors.
He manipulated the portal, prosecutors say, to show current and potential clients their trading performance to give a false impression of their investments’ success.
Baker introduced a person identified as “T.S.” in court documents to become a client of Sukthankar’s, according to court documents.
T.S. initially invested $1 million, but later invested an additional $4 million when Sukthankar showed T.S. inflated account numbers that led T.S. to believe his trades were successful.
Sukthankar was arrested Aug. 9 for driving while intoxicated in Tarrant County, Texas, according to online court records. It is not clear if he is still in custody.
Baker’s home city was not available Thursday morning.
Sukthankar and Baker could face a maximum total of 40 years in prison for the federal charges.
