A stockbroking scam in Bihar's Surat has come to light with the CID filing a case against 15 individuals, The Times of India reported.
The alleged scam involves Zerodha. One individual has been accused of creating fake Demat and trading accounts on the brokerage platform.
The man, a former client associate with Zerodha, opened 432 accounts over two years, the publication reported.
He initially earned commissions for helping people open these accounts, but the company later found out that many were fraudulent.
How the scam was executed
Forged documents were used to open accounts and 14 other people from Bihar were involved in managing these accounts as well as engaging in trading activities.
A series of 'iceberg trades' were carried out. Here, small trades are spread across many accounts in order to generate high brokerage fees. Thus, the prime accused and the other individuals allegedly made a lot of money in the process, the publication noted.
An audit showed that the scam had led to a tax and GST evasion worth Rs 2.20 crore, TOI reported, adding that the total fraud amount was Rs 2.75 crore.
It came to light when Zerodha took note of a large number of accounts which had debit balances which account holders denied having opened.
The accounts which were involved in the scam lost around Rs 70,000 to Rs 72,000 each. The CID is now probing the matter and taking legal action against the accused, the publication said.
Earlier this week, a fake currency manufacturing factory was busted in Surat. Four people were arrested in the case.
The accused persons had rented office space in a commercial building in the guise of running an online garment business but were allegedly printing fake currency on the premises.
Deputy Commissioner of Police Rajdeep Nakum said the accused were allegedly inspired by the web series Farzi, starring actor Shahid Kapoor, which shows a small-time con artist who gets rich by counterfeiting currency notes.
(With PTI inputs)
Published 25 September 2024, 06:00 IST