Key Takeaways
- • SEC charged two Texas brothers, Saumil and Poorvesh Thakkar, with defrauding approximately 50 investors in a real estate-focused private fund, raising over $12 million through false statements between December 2017 and September 2020.
- • The brothers misrepresented their contractual rights to the Park Plaza Tower in Dallas, claiming they had the property under contract when they only possessed limited rights to make an offer, according to the SEC complaint filed February 19, 2026, in US District Court for the Eastern District of Texas.
- • The alleged fraud scheme involved misrepresentations about property contracts, leasing arrangements, costs, and insider transactions related to the PASMAA GP Investment Fund.
- • This enforcement action represents a significant regulatory response to real estate investment fraud targeting institutional capital, highlighting vulnerabilities in private fund due diligence and contract representation disclosures.
Summary
The Securities and Exchange Commission filed charges on February 19, 2026, against Saumil Thakkar and Poorvesh Thakkar, alleging they fraudulently raised more than $12 million for PASMAA GP Investment Fund by systematically misleading approximately 50 investors over a nearly three-year period. The complaint, filed in the US District Court for the Eastern District of Texas, details a coordinated scheme spanning from December 2017 through September 2020.
Central to the SEC's allegations is the misrepresentation regarding Park Plaza Tower in Dallas. The brothers allegedly told investors they had the property under contract, when in reality their position was substantially more limited—they possessed only rights to make an offer on the asset. This fundamental mischaracterization of their contractual position formed a core pillar of the fund's investment thesis and capital raise.
Beyond the Park Plaza Tower misrepresentation, the SEC alleges the brothers made false statements across multiple dimensions of fund operations, including property leasing arrangements, investment costs, and undisclosed insider transactions. These representations occurred while the Thakkar brothers' companies controlled the fund, enabling them to exercise direct influence over disclosures to limited partners.
The enforcement action underscores persistent vulnerabilities in private real estate fund structures, particularly regarding contract verification and the adequacy of investor protections in non-registered investment vehicles. For institutional investors and family offices allocating capital to real estate-focused funds, the case reinforces the necessity for enhanced due diligence protocols, independent verification of property interests, and rigorous review of management representations before capital commitment.
Central to the SEC's allegations is the misrepresentation regarding Park Plaza Tower in Dallas. The brothers allegedly told investors they had the property under contract, when in reality their position was substantially more limited—they possessed only rights to make an offer on the asset. This fundamental mischaracterization of their contractual position formed a core pillar of the fund's investment thesis and capital raise.
Beyond the Park Plaza Tower misrepresentation, the SEC alleges the brothers made false statements across multiple dimensions of fund operations, including property leasing arrangements, investment costs, and undisclosed insider transactions. These representations occurred while the Thakkar brothers' companies controlled the fund, enabling them to exercise direct influence over disclosures to limited partners.
The enforcement action underscores persistent vulnerabilities in private real estate fund structures, particularly regarding contract verification and the adequacy of investor protections in non-registered investment vehicles. For institutional investors and family offices allocating capital to real estate-focused funds, the case reinforces the necessity for enhanced due diligence protocols, independent verification of property interests, and rigorous review of management representations before capital commitment.
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