Travis Kelce has been named as a victim of a Ponzi scheme in which investors were allegedly defrauded of more than $35 million. The Kansas City Chiefs tight end was identified in federal court as one of several people who lost money in the operation.
Siddharth Jawahar, who ran Swiftarc Capital LLC, has been sentenced to 11 years in prison. He was also ordered to pay $31.35 million in restitution to those affected.
Prosecutors said Jawahar funnelled almost all of his clients’ money into a single investment, Philip Morris Pakistan. When that investment failed to deliver, he allegedly misled Kelce and other investors about the performance of their money.
The court heard that Jawahar used funds from new investors to pay earlier clients, creating what prosecutors described as a Ponzi scheme. He is also alleged to have spent investors’ money on private jets, luxury hotels, restaurants, apartments in Austin and New York, and memberships at private clubs.
Only about $10 million of the $35 million entrusted to Jawahar was invested, prosecutors said. The precise amount lost by Kelce has not been disclosed, and he has not been accused of any wrongdoing.
A judge said Jawahar had “weaponized” the trust placed in him by investors. Representatives for Kelce were approached for comment.
Kelce is understood to be one of several sports figures who invested in the fund. NBA player Gary Harris previously described having a “strong relationship” with Jawahar while discussing his interest in venture capital.
“It’s been fun, especially getting into the venture capital side of things,” Harris said in 2021. “I’m just trying to be a sponge and trying to learn. Being around Sid has helped me grow so much as a person, especially looking to do more things than just basketball.”
Miami Heat guard Tim Hardaway Jr and former San Antonio Spurs centre Mason Plumlee were also identified as investors in the fund.
The financial loss comes during an expensive period for Kelce, who has recently married Taylor Swift and bought a $5.35 million lakefront mansion in Bratenahl, Ohio.
Kelce, who is entering his 14th NFL season, agreed a new three-year contract with the Chiefs earlier this year. The deal guarantees him $12 million this season and could pay up to $57.735 million over its duration.
