SEC Bars Ex-Hilltop and Merrill Lynch Broker After $2.9 Million Fraud Case

The U.S. Securities and Exchange Commission announced that it has officially barred former Hilltop Securities and Merrill Lynch broker Rajesh Markan from the securities industry.

As previously reported by AltsWire, Markan was charged with defrauding roughly $2.9 million from brokerage clients between 2015 and 2024 by soliciting investments in a fictitious private equity fund he called the “Intrinsic Value Portfolio.” Markan falsely claimed the fund was advised by a well-known New York private equity firm and supported his pitch with fabricated documents and investor statements. In reality, no such fund existed, and Markan allegedly misappropriated most of the investor funds for personal use, even using some proceeds to make Ponzi-like payments to other investors on at least one occasion.

According to the SEC, on July 9, 2025, a federal court in Texas entered a final judgment against Markan, permanently enjoining him from violating federal securities laws. The judgment followed Markan’s earlier guilty plea to one count of securities fraud in a parallel criminal case filed by the U.S. Attorney’s Office for the Northern District of Texas.

Similarly, the SEC has now finalized its own administrative action by barring Markan from associating with any broker, dealer, investment adviser, or other regulated entity. He is also permanently prohibited from participating in any penny stock offerings.

The action formalizes what began in October 2024, when FINRA expelled Markan from the brokerage industry. According to court documents, Markan admitted he knowingly defrauded clients, used falsified account statements, and operated with clear intent to deceive.

Markan’s former registration history includes stints with Ameriprise Financial, Citigroup Global Markets, Merrill Lynch, and Hilltop Securities.

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