Mumbai: Three arrested in Rs 3.45 crore stock market fraud case

Two of the accused were arrested from Gujarat. Representative Image

The North Cyber division of the Mumbai Cyber Cell has successfully solved two separate cases of investment fraud, where retired senior citizens were duped out of Rs 1.88 crore and Rs 1.57 crore, respectively. Three individuals have been arrested in connection with both cases, with two suspects apprehended in Gujarat and one in Pune.

Officials stated that the arrested suspects acted as beneficiaries, providing their current accounts to cyber criminals believed to be operating from abroad. The rapidly increasing stock market cyber fraud is suspected to be linked to operations in countries such as China, Cambodia, Hong Kong, and Dubai.

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The two accused arrested from Gujarat have been identified as Saurabh Sanghani, 29, a BSc graduate and chemical dealer from Ankleshwar, and Gunjan Bhaisania, 36, a dropout chemical engineer involved in the cosmetic business, arrested in Surat.

Both suspects are known to each other and have been conducting business together, with Sanghani supplying chemicals to Bhaisania for his cosmetic business.

According to the cyber police, the arrested suspects were beneficiaries of a fraudulent account registered in Bhaisania's name but used by Sanghani. Sanghani was receiving and withdrawing fraudulent funds from the account.

It was also discovered that Sanghani had granted access to the account to another individual, which is now under investigation.

The cyber cell reported that a total of Rs 66.77 lakh from fraudulent activities had been deposited into the account and later transferred elsewhere by the person controlling it. Officials further disclosed that 33 cyber fraud complaints have been registered against this account across India.

"We have been working on the case for two to three months, and after a detailed technical analysis, arrests have been made. Further links are being established to apprehend others involved in the scam," said Datta Nalawade, DCP Crime.

According to officials, a 71-year-old retired professor was duped under the pretext of investing in the stock market between March and April this year. In his statement to the police, the complainant said he was added to a WhatsApp group called "ICICI Securities VIP" by an unknown person who identified himself as Rajiv Ambani, the CIO, and his assistant Laxmi. They would regularly post stock market investment tips on the group. The complainant mentioned that, upon joining the group, many people were sharing screenshots of the significant profits they claimed to have made using the tips provided.

As per the FIR, Rajiv Ambani posted a message in the group saying, "Now that I've asked everyone to pay Rs 1,000 per month, let me take the responsibility. I've been investing in the stock market for 40 years, dedicating my life to the capital market. I enjoy the thrill of the market's ups and downs and hope to help everyone profit with my abilities. I also aim to bring true popularity to ICICI. You profit from my advice, and I charge Rs 1,000 per month. Let's cooperate with each other."

The complainant, convinced by the message, transferred Rs 1,000 to the fraudster's account. Shortly after, everyone in the group was removed except him. The complainant alleged that Rajiv then contacted him directly, claiming that he had resigned from ICICI Securities and was now running his own investment business.

The senior citizen fell for these claims and began investing through a fraudulent Demat account called "EICICRE," which the cybercriminals claimed was an institutional investment platform promising a 30 per cent profit. The senior citizen downloaded the app and invested Rs 1.81 crore. The app showed a balance of Rs 20.5 crore, but he was unable to withdraw the funds. It was only later that he realised he had been scammed.

Another victim of stock market scheme

In a similar case of cyber fraud, a 62-year-old housewife was duped out of Rs 1.57 crore using tactics similar to those in previous scams. She was added to a WhatsApp group and lured with promises of high returns. Based on her complaint, the cyber police arrested one suspect from Sambhaji Nagar last evening. The accused, identified as Devidas Rao Saheb Jadhav, works as a driver in rural Maharashtra. Officials revealed that his current account had received approximately R45 lakh from the total cyber fraud amount. Jadhav willingly provided his account to the cybercriminals and withdrew the amount via cheque.

According to the cyber cell, beneficiaries like Jadhav typically receive Rs 20,000 to Rs 40,000 per account, based on the transactions made through their accounts, and sometimes receive 1 per cent of the total transaction amount. Officials added that the transactions in both cases formed the first layer, after which the funds were transferred through 10-12 different accounts to create multiple layers, making it challenging for law enforcement to trace the money.

By the time the authorities reach the final layer, the money is often converted into cryptocurrency and transferred to foreign countries. Officials have reported a significant rise in stock market-related cyber fraud cases this year, with around 1,000 cases being reported to the cyber police.

The cyber police handle cases where the fraud exceeds Rs 10 lakh, while cases involving smaller amounts are being investigated by local police, who have also received several hundred complaints of such investment fraud.