Rajesh Markan Barred, Sued & Pleads Guilty to Fraud – Former Merrill Lynch Advisor Accused of $2.9 Million Scheme
The White Law Group continues to investigate potential securities fraud lawsuits involving former financial advisor Rajesh Markan (CRD#: 4553309), who has been barred by FINRA, barred by the SEC, and has pleaded guilty to criminal fraud charges in connection with an alleged long-running investment scheme.
SEC Files Civil Fraud Charges Against Rajesh Markan Result in Bar
On July 18, 2025, the SEC announced it had barred Rajesh Markan from the securities industry—finalizing an administrative action that permanently prohibits him from associating with any broker, dealer, or investment adviser.
This SEC bar follows:
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His criminal guilty plea on June 10, 2025, for fraud related to the $2.9 million scheme.
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A civil complaint filed on June 27, 2025, with consented judgment for antifraud violations, including misappropriation and fabricated investment documents.
On June 30, 2025, the Securities and Exchange Commission (SEC) announced that it had reached a settlement with Rajesh Markan, 48, of suburban Dallas, Texas. The SEC complaint alleges that from 2015 to 2024, Markan fraudulently raised nearly $2.9 million from approximately 10 clients by offering investments in a phony private equity fund called the Intrinsic Value Portfolio.
At the time of the alleged misconduct, Markan was working at Merrill Lynch and later Hilltop Securities.
According to the SEC’s allegations:
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The fund never existed.
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Markan used the funds to pay for personal expenses, including a luxury sports car, IVF treatments, elective surgery, entertainment, and daily living costs for himself and a former spouse.
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He created fake account statements and registered a fake domain name to impersonate a representative from a New York-based private equity firm.
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He misled clients by claiming the fund was backed by a legitimate firm and would provide above-market returnswith a typical 6–12 year lock-up period.
Although he repaid around $640,000 to two investors, the remaining funds were misappropriated. Markan consented to a final judgment in the SEC’s civil suit without admitting or denying the allegations. The court will determine final penalties, including disgorgement, interest, and civil fines.
Criminal Charges – Markan Pleads Guilty to Fraud
In a parallel criminal case, the U.S. Attorney’s Office for the Northern District of Texas charged Markan with one count of wire fraud, to which he pleaded guilty on June 10, 2025. The charge relates to the same $2.9 million scheme detailed in the SEC complaint.
FINRA Bar Following Hilltop Termination
Markan’s misconduct also led to regulatory action from the Financial Industry Regulatory Authority (FINRA). On October 1, 2024, FINRA barred him from the securities industry after he failed to cooperate with an investigation.
The investigation was prompted by a Form U5 submitted by Hilltop Securities, which noted that Markan was “under internal review for fraud or wrongful taking of property, or violating investment-related rules or industry standards.”
Rajesh Markan’s Employment History
According to FINRA BrokerCheck, Markan has been registered with the following brokerage firms:
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Hilltop Securities Inc. (CRD#: 6220) – 2022 to 2024
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Merrill Lynch, Pierce, Fenner & Smith Inc. (CRD#: 7691) – 2009 to 2022
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Citigroup Global Markets Inc. (CRD#: 7059) – 2006 to 2009
Markan began his securities career in 2002 and reportedly has 9 customer disputes on his record. Allegations include:
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Soliciting fraudulent investments
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Misappropriation of client funds
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Recommending unauthorized outside investments
In 2022, Merrill Lynch reported that Markan voluntarily resigned after failing to disclose a loan from a client.
Investor Lawsuits – Recovering Investment Losses
Under Regulation Best Interest (Reg BI), brokerage firms are obligated to supervise their representatives and ensure all investment recommendations are suitable for clients. If a firm fails in its supervisory duties or fails to detect fraudulent behavior, investors may be eligible to recover their losses.
The securities fraud attorneys at The White Law Group are currently investigating claims on behalf of investors who lost money investing with Rajesh Markan. We represent clients nationwide in FINRA arbitration claims involving fraud, negligence, and misconduct.
If you suffered losses, please call (888) 637-5510 for a free consultation to discuss your legal options.
Frequently Asked Questions (FAQs)
1. What is the Intrinsic Value Portfolio Fund?
The Intrinsic Value Portfolio was allegedly a fake private equity fund created by Rajesh Markan to defraud investors. The SEC states the fund never existed, and Markan misappropriated the money for personal use.
2. How can I recover losses from a fraudulent financial advisor?
If your advisor engaged in fraud or misrepresentation, you may be able to file a FINRA arbitration claim against the brokerage firm that employed them. A securities attorney can help evaluate your recovery options.
3. What happens when an advisor is barred or pleads guilty?
When an advisor is barred by FINRA or pleads guilty to fraud, it strengthens the legal basis for pursuing civil claims or FINRA arbitration to recover losses. It may also prompt further regulatory and legal action.
About The White Law Group
The White Law Group, LLC is a national securities fraud and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. Since its founding in 2010, the firm has handled over 800 FINRA arbitration cases, helping investors across the U.S. recover losses due to:
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Fraudulent investment schemes
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Broker misconduct
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Selling away
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Unauthorized trading
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Ponzi schemes and unsuitable recommendations
For more information, please visit our website or call (888) 637-5510.
Last modified: July 21, 2025
