By Robert Haugh
The Securities and Exchange Commission (SEC) has charged SiliconSage Builders with defrauding investors. Hundreds of investors may have lost $119 million in a Ponzi scheme.
SiliconSage owner Sanjeev Acharya allegedly raised money from new investors to pay old investors. According to the SEC, he did this because for the last four years only one of the developer’s projects has been profitable.
“As we allege in our complaint, wrongdoers sometimes prey on the trust of members of their communities to raise funds for their fraudulent schemes,” said Alka Patel, Associate Regional Director of the SEC’s Los Angeles Regional Office in a press release. “Affinity frauds are particularly harmful to retail investors, and this case demonstrates the SEC’s commitment to pursuing such schemes and protecting retail investors.”
Santa Clara Controversy
SiliconSage was in the middle of major controversy in Santa Clara last year.
A SiliconSage executive Harbir Bhatia unsuccessfully ran for City Council. She lost to Kathy Watanabe in District 1.
During the campaign, residents complained that Bhatia acted as a lobbyist but failed to register as required.
Bhatia and SiliconSage are the subjects of a City investigation in their lobbying activities.
Labor officials have also accused SiliconSage of worker wage theft. They mailed out brochures letting Santa Clara voters know of the accusations and Bhatia’s role in the company.
Bhatia also was President of the Santa Clara Library Foundation in 2019. It was believed Bhatia solicited the lead contribution to the Foundation’s fundraising dinner and auction from SiliconSage. But in an email Bhatia denied it.
“I was an employee of the company and nothing to do with fundraising for investor relations. I focussed [sic] on community benefit. I made recommendations on projects and initiatives that could benefit the community.”
But according to sources, SiliconSage has not paid the Library Foundation.
Bhatia did not respond if she would help fulfill the financial commitment to the Library Foundation.
According to the Mercury News, the developer also stiffed other nonprofits like San Jose Jazz and SPUR.
The SEC’s complaint is filed in the U.S. District Court for the Northern District of California according to their press release. They seek preliminary and permanent injunctions, the appointment of a receiver over SiliconSage, asset freezes, disgorgement with prejudgment interest, and financial penalties against the defendants, as well as an order prohibiting the destruction of documents.
[…] Silicon Sage. The developer declared bankruptcy after the Securities and Exchange Commission (SEC) charged them with defrauding investors. Hundreds of investors may have lost $119 million in a Ponzi […]
Your false accusations about me must come to an end. It is utterly shameful blogging and completely unacceptable to create lies out of thin air. Your continued lies to mislead the readers will be met with a just and legal response.
For the few readers of this blog, these are all false accusations with the intent to deceive the public for the purpose of sensationalism.
Ho! Ho! Ho! Guess you weren’t happy about the coal in your stocking.
u need to know what a fraud bhatia and siliconsage is. Robert didn’t deceive anyone.
Its all true. They did it all by themselves.
U shld be ashamed. U hurt pple in the bay area with ur decption to promote urselves.
this was about u and no 1 else. go 2 jail. do not pass go. do not collect 2 hundred dollars.
strait to jail.
https://sanjosespotlight.com/nonprofits-say-they-were-victims-of-sunnyvale-firm-accused-of-fraud/?utm_source=dlvr.it&utm_medium=twitter
Typical of outfits like SiliconSage: Photo ops with charities who are really taking hits not only in the pandemic, but worse hits due to more restrictive IRS codes on charitable deductions. It’s a shame that several charities must now write off SS’ empty promises.
But I’m happy for District 1 voters who really dodged a bullet by not electing Harbir Bhatia to that District seat.
Did Harbir abandon ship in time?
So sad… another morning in Yorkville. Wonder what Santa (Jed) has in store for us this Christmas? I just can’t wait….. I’m so excited!!
The residents are just so lucky to have him in charge now. I mean, just look at one (1) of the fine examples that he spent so much time and effort to vet out for us?
Anyone keeping score? Is our City is in better shape with this new version of what I call the “49er City Council”.
Oh, that’s right, all the 49er City Council members will explain to us in detail that they actually never received a $1.00 from Jed York.
They have no idea where the $750,000 came from, and they are aghast that anyone would imply otherwise.
Actions speak louder than words. And if the first two weeks are any indications…. then I may need to get some earplugs, because it’s ringing loud and clear!
Say what you want 49er City Council…. just remember while we may not hear what you say, the residents are watching what you do, and who you represent.
Burt Field