ED arrests two in Bengal in connection with bogus financial scheme racket
Kolkata: The Enforcement Directorate (ED) has arrested two persons from two districts in West Bengal in connection with a case where investors were duped through bogus investment schemes run by a fake financial entity.
Both were arrested late Thursday night after marathon raids and search operations at five different locations in two districts of the state that started in the morning. All these places were linked to said financial entity, christened LFS Broking Private Limited.
The two persons were identified as Dilip Maiti and Md Anarul Islam. While Maiti was arrested from his residence-cum-office at Arambagh in Hooghly district, Islam was arrested at Bolpur in Birbhum district.
Sources said the investigating officials, during their daylong raids and search operations on Thursday, seized several incriminating documents from these five places, especially from the residences-cum-offices of the two arrested accused persons.
Currently, sources said, both are being interrogated to secure further details on the matter. It is learned that while Maiti is one of the directors, the other is a top official of the said entity.
The entity’s identity as a share brokerage firm, as per ED findings, was just a façade, and in reality, they used to push unauthorised and bogus financial investments in the market, especially in the rural areas of West Bengal, and in the process, duped several investors with huge amounts of money.
Information regarding the floating of a bogus financial investment scheme by the said entity surfaced when a couple of investors committed suicide after losing all their savings, with one of them ending his life at an office of the entity.
To recall, in June last year, the Securities & Exchange Board of India (SEBI) announced the cancellation of the said financial entity. SEBI also barred its managing director, Ziaur Rahaman, who is currently behind bars, from being employed or associated with any registered intermediary for five years.
In papers, besides operating as a share brokerage firm, the entity also showed involvement in other businesses like portfolio management and depository participation, among others.