SEC Charges Thakkar Brothers With Defrauding Investors Of $12M
The Securities and Exchange Commission is going after a pair of brothers from a prominent North Texas real estate family for allegedly bilking investors out of more than $12M over a three-year period.
The SEC filed fraud charges against Saumil Thakkar and Poorvesh Thakkar in the U.S. District Court for the Eastern District of Texas for allegedly misleading close to 50 investors between 2017 and 2020. The complaint states the Thakkar brothers lured investors with faked documents and a claim that their real estate investment fund, Pasmaa GP Investment Fund LLC, had Park Plaza Tower in Dallas under contract for purchase.
In reality, the Thakkar brothers’ offer for the building had already been rejected, AltsWire reported.
Bisnow's requests for comment were not immediately returned by Saumil Thakkar, Poorvesh Thakkar or their affiliated companies, Thakkar Developers and Perfect Group Holdings LLC.
The SEC seeks permanent injunctions against the Thakkar brothers, the forfeit of all profits made from the endeavor, and an order preventing them from issuing or selling securities in the future. Saumil Thakkar and the investment fund also face civil penalties.
Through the investment fund and Perfect Group Holdings, the Thakkar brothers are alleged to have made a number of misrepresentations to attract potential investors who were also clients of their McKinney tax consulting business.
A related filing from the SEC states the fund’s minimum accepted investment was $50K.
Thakkar Developers’ website lists five current projects.
Marketing materials allegedly touted strong preleasing at development projects despite none existing. And Saumil Thakkar was said to have shown investors land acquisition costs for the Mustang Square mixed-use development in Plano that were more than $1M less than the actual amount spent.
The Thakkar brothers also allegedly funneled at least $2.2M in management fees through their affiliate companies despite the fund’s offering documents stating no fees would be charged.
The SEC’s complaint states the Thakkar family planned to include as much as $3.5M of their own money in the fund, though their actual investment was less than half that.
In addition to Thakkar Developers, the family owns a number of entertainment companies, including the Fun Movie Grill theaters and FunAsia Radio.
Poorvesh Thakkar previously ran afoul of the SEC in 2016 and had to pay $16K for his part in an audit-related fraud at his father’s accounting firm, Thakkar CPA.
Saumil Thakkar was sued by Monroe Capital Management in June for defaulting on a $35.7M loan for the 80-acre mixed-use development The Avenue in Allen. He and his firm, Perfect Development, entered into a forbearance agreement with Monroe Capital in early 2025 but failed to pay the $24.1M due, according to The Real Deal.
