SEC v. Pathyam Patel, No. LR-26406, Northern District of Alabama (Sept. 22, 2025) — Press Release

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26406 / September 22, 2025 Securities and Exchange Commission v. Pathyam Patel, No. 7:25-cv-01603 (N.D. Ala. filed Sept. 19, 2025) SEC Charges Pathyam Patel With Over $400,000 Fraud The Securities and Exchange Commission today announced that Pathyam Patel has agreed to settle charges that he fraudulently induced at least 15 individuals to invest over $430,000 with his company, Infinity Wealth Management, LLC (“Infinity”), by making numerous misrepresentations to clients about his and Infinity’s qualifications, licensure, and endorsement by the Commission, how he would invest their funds and the profitability of the investments, and by guaranteeing the principal they invested. According to the SEC’s complaint, filed in the United States District Court for the Northern District of Alabama, from January 2019 through March 2023, deceived prospective and current clients by telling them Infinity was registered with the Commission as an investment adviser that offered investment portfolio management services to a wide range of clients, and that he would invest their money in various stocks and options as well as crypto assets. The complaint further alleges that, rather than invest his clients’ money as promised, Patel misappropriated most of their money to pay for personal expenses and to make Ponzi-like payments to other clients. The complaint also alleges that Patel further enriched himself by charging clients thousands of dollars in bogus fees, including so-called “transfer fees” and fees purportedly owed to the SEC, IRS, and Virginia State Corporation Commission. The complaint further alleges that an order requiring Patel to make payments to investors was entered in connection with a parallel investigation conducted by the Alabama Securities Commission. Patel consented to the entry of a final judgment, subject to court approval, which would permanently enjoin him from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and (2) of the Investment Advisers Act of 1940, enjoin him for a period of five years from acting as, or being associated with, any investment advisor, and enjoin him for a period of five years from participating in the issuance, purchase, offer, or sale of any security (with the exception of trading in securities in his own account). The SEC’s investigation was conducted by Jennifer Miller and David Medway, with the assistance of trial counsel John V. Donnelly III, all of the SEC’s Philadelphia Regional Office. Kingdon Kase, Gregory R. Bockin, and Scott A. Thompson, also of the SEC’s Philadelphia Regional Office, supervised this matter. The SEC appreciates the assistance of the Alabama Securities Commission.

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26406 / September 22, 2025 Securities and Exchange Commission v. Pathyam Patel, No. 7:25-cv-01603 (N.D. Ala. filed Sept. 19, 2025) SEC Charges Pathyam Patel With Over $400,000 Fraud The Securities and Exchange Commission today announced that Pathyam Patel has agreed to settle charges that he fraudulently induced at least 15 individuals to invest over $430,000 with his company, Infinity Wealth Management, LLC (“Infinity”), by making numerous misrepresentations to clients about his and Infinity’s qualifications, licensure, and endorsement by the Commission, how he would invest their funds and the profitability of the investments, and by guaranteeing the principal they invested. According to the SEC’s complaint, filed in the United States District Court for the Northern District of Alabama, from January 2019 through March 2023, deceived prospective and current clients by telling them Infinity was registered with the Commission as an investment adviser that offered investment portfolio management services to a wide range of clients, and that he would invest their money in various stocks and options as well as crypto assets. The complaint further alleges that, rather than invest his clients’ money as promised, Patel misappropriated most of their money to pay for personal expenses and to make Ponzi-like payments to other clients. The complaint also alleges that Patel further enriched himself by charging clients thousands of dollars in bogus fees, including so-called “transfer fees” and fees purportedly owed to the SEC, IRS, and Virginia State Corporation Commission. The complaint further alleges that an order requiring Patel to make payments to investors was entered in connection with a parallel investigation conducted by the Alabama Securities Commission. Patel consented to the entry of a final judgment, subject to court approval, which would permanently enjoin him from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and (2) of the Investment Advisers Act of 1940, enjoin him for a period of five years from acting as, or being associated with, any investment advisor, and enjoin him for a period of five years from participating in the issuance, purchase, offer, or sale of any security (with the exception of trading in securities in his own account). The SEC’s investigation was conducted by Jennifer Miller and David Medway, with the assistance of trial counsel John V. Donnelly III, all of the SEC’s Philadelphia Regional Office. Kingdon Kase, Gregory R. Bockin, and Scott A. Thompson, also of the SEC’s Philadelphia Regional Office, supervised this matter. The SEC appreciates the assistance of the Alabama Securities Commission.