1. Introduction This report analyzes the legal case initiated by the U.S. Securities and Exchange Commission (SEC) against Surage Kamal Roshan Perera and his firm, Janues Capital Incorporated. The case, filed in the United States District Court for the Eastern District of New York, alleges fraudulent investment practices by the defendants, resulting in significant investor losses. The case underscores the importance of regulatory oversight in financial markets to protect investors from deceptive and fraudulent schemes.

2. Background and Allegations Between February 2022 and March 2023, Perera, a former broker, engaged in fraudulent activities using Janues Capital Incorporated. The SEC alleges that Perera misled at least one investor regarding investment opportunities, misappropriated funds, and concealed trading losses using falsified documents. Specifically, he promised access to restricted securities at discounted prices and guaranteed investment returns through a strategy he termed ‘Options Straddles.’

Perera presented himself as a credible and experienced financial professional, leveraging his past industry experience to gain investor trust. He fabricated investment documents, misrepresented the nature of the securities being offered, and provided fraudulent account statements to sustain his deceptive practices. Additionally, he assured the investor that their funds were safe and protected by a purported trading strategy that minimized losses while ensuring high returns.

3. Key Findings

• Perera convinced an investor to invest approximately $4.3 million in various securities based on false representations.
• Instead of purchasing the promised securities, he transferred at least $3.5 million into a brokerage account in his wife’s name and engaged in high-risk, leveraged trading.
• The trading resulted in over $3 million in losses, which Perera concealed through falsified trade confirmations and account statements.
• To maintain the deception, Perera used new investor funds to make partial repayments in a Ponzi-like manner.
• Perera engaged in over $2.5 billion in securities transactions, further demonstrating the extent of his financial misconduct.
• The SEC secured emergency relief, including a temporary restraining order and asset freeze, to prevent further dissipation of investor funds.
• The fraudulent activities extended beyond a single investor, indicating the potential for a broader pattern of misconduct affecting multiple victims.

4. Legal Violations The SEC’s complaint charges Perera and Janues Capital with multiple violations, including:

• Section 17(a) of the Securities Act of 1933 (fraud in the offer or sale of securities).
• Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 (fraud in connection with the purchase or sale of securities).
• Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 (fraudulent conduct by investment advisers).
• Perera is also charged with aiding and abetting these violations.
• Additional claims include misrepresentation, falsification of investment records, and using unauthorized funds to cover up losses.

These violations indicate a clear pattern of fraudulent financial behavior, with the intention to deceive and manipulate investors for personal financial gain. The breadth of transactions and the extent of misrepresentation further amplify the severity of the allegations.

5. Relief Sought by SEC The SEC is seeking:

• Permanent injunctions against Perera and Janues Capital to prevent further violations.
• Disgorgement of ill-gotten gains with prejudgment interest and financial penalties.
• A ban preventing Perera from serving as an officer or director of a publicly traded company.
• Recovery of unjust enrichment from Nishani Alahakoon, Perera’s wife, whose brokerage account was used in the fraudulent scheme.
• Additional financial penalties based on the severity and duration of the fraudulent scheme.
• Potential restitution to affected investors to mitigate their financial losses.

6. Broader Implications This case highlights the risks associated with investment fraud and the need for vigilance among investors. Regulatory agencies such as the SEC play a crucial role in identifying and prosecuting fraudulent activities to protect investors and maintain market integrity. The legal proceedings against Perera and Janues Capital serve as a warning to other financial professionals who may consider engaging in deceptive practices.

The case also sheds light on the importance of investor education and due diligence. Investors are encouraged to verify the credentials of financial advisors, cross-check investment opportunities, and seek independent advice before committing funds. Fraudulent schemes often rely on persuasive marketing tactics and false assurances, making it imperative for investors to remain cautious and informed.

7. Conclusion The SEC’s case against Surage Kamal Roshan Perera and Janues Capital Incorporated highlights a significant case of investment fraud, misappropriation, and misrepresentation. By obtaining emergency relief, the SEC aims to prevent further investor harm and hold the defendants accountable for their deceptive financial practices. The case serves as a cautionary example of the risks posed by fraudulent investment schemes and underscores the importance of due diligence in financial transactions.

As the legal proceedings continue, further revelations may emerge regarding the full extent of Perera’s fraudulent activities and their impact on investors. This case reinforces the necessity of stringent regulatory oversight and the enforcement of securities laws to ensure transparency, fairness, and accountability in financial markets.

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