Nanban Ventures: $130 Million Fraud Case

The SEC has charged Nanban Ventures, GSM Eternal, Himalayan FinTech, Centum FinTech, and their founders with running a $130 million fraudulent scheme. More than 360 investors, many from the Dallas–Fort Worth Indian American community, were targeted.

The founders promoted a “GK Strategies” trading method that supposedly guaranteed profits in any market. To build trust, they used affinity marketing (“Nanban” means “friend” in Tamil) presenting themselves as part of the community.

From 2021 to 2023, the companies raised about $40 million through high-yield promissory notes. They also launched five funds promising 18% fixed annual returns. Investors had no say in how their money was used.

The reality was different. Returns averaged just 2.2%, not “double-digit” as claimed. Some payouts came from new investors’ money, showing signs of a Ponzi scheme.

Millions were misused: $6 million went directly to the founders, while more was shuffled between their entities. They even exaggerated assets under management, claiming billions when the total never exceeded $130 million.

The SEC is seeking an asset freeze, a restraining order, and repayment of ill-gotten gains.

The case is a reminder of affinity fraud, scams that prey on cultural or community trust. Investors should be wary of guaranteed returns, ask for transparency, verify credentials, and resist pressure to invest quickly.

If you invested with Nanban or similar schemes, legal remedies may be available.

https://www.morgansmithpllc.com/litigation