On December 13, 2010, Douglas filed a complaint with the SEC (U.S. Security Exchange Commission), making some bogus claims with a bunch of documents made by him and other conspirators. He found an entity named, “NITHYANANDA INVESTMENT FUND I LP” and alleged these were hedge funds and a part of a larger organized crime scheme that was used to help finance various crimes.
Such a fund does exists, but the related people named as per government records is some third party. Basically, just because the name of the entity contained the word “Nithyananda”, Douglas made a whole story out of it. Even independently no irregularities are known related to this entity. Some presstitutes claimed this to be their original “investigation” and published this article.
It is like, if someone sets up a “Shiva Cafe”, does it mean Lord Shiva owns it?
The bogus complaint filed by Douglas was received by Mr. Bryan Burke, SEC Investor Assistance Specialist. He forwarded the report to a SEC agent. The report received a number: HO-00100476
Naturally no action was taken, and Mr. Bryan Burke (SEC Investor Assistance) stopped returning Douglas’ phone calls. Douglas then approached the SEC branch in San Francisco and spoke with Ms. Susan Lee, Office of Investor Education and Advocacy. Even here his attempts failed. He couldn’t secure an appointment with any SEC Agent in San Francisco, let alone convince.