4 months, 26 victims: Sham stock scheme pulls off big con

A sham stock investment scheme conned Rs 2.9 crore out of three Bengalureans and almost two dozen others between August and November this year, investigations by DH show.

The scheme was marketed on social media as a stock market education course and offered tips on stocks that will do well. Most of these tips worked, hooking the investors.

Investors were then asked to put a minimum of Rs 10 lakh into stocks through a “US-based institutional investor”. However, they weren’t supposed to do this via registered trading platforms. Instead, they were asked to sign up on unlisted apps and dubious websites. They were given different bank accounts to transfer the money.

Investors were coaxed into putting in more money with the promise that the “institutional investor” would contribute an equal sum. On the website and the apps, the victims said they were shown the performance of the trades, their investments and gains. It is suspected that the websites and apps were showing paper trades or simulations without actual trade with real money taking place.

However, when investors sought to withdraw the money, they were asked to cough up a 20 per cent commission and a 30 per cent “income tax”. Even when they paid the levies, a “letter” from the US Securities and Exchange Commission informed them that their funds had been frozen over suspected “stock manipulation”.

Three investors from Bengaluru lost Rs 1.08 crore. Among them was a doctor who lost Rs 70 lakh. Elsewhere, 23 victims, including an experienced stock market trader, were conned. 

At least six FIRs have been registered over the scam, including three in Bengaluru. 

The suspected kingpin is a so-called stock analyst named Aditya Agarwal. He was assisted by nine others — Tina Walmart, Shakti, Ritu D'Souza, Meera, Namrata Pardasani, Vanita, Sunvi Chopra, Deena and Anna. 

Bengaluru police’s cybercrime investigators believe that all the names are likely fake and suspect the involvement of more people. 

The victims told DH that they never saw Agarwal appear on camera and only a PowerPoint presentation was visible. They also alleged that the option to comment was disabled once some people began raising doubts. 

Dr Sumant Rao (name changed on request), 42, from Bengaluru, lost Rs 70 lakh. He initially deposited Rs 5 lakh and was asked to invest more for better returns. 

He was given credentials to log in to www.artisanstocks.com where he could trade as an “institutional account holder”. After several more investments of Rs 10 lakh, the website showed he had “gained” Rs 2.30 crore.

When Rao asked for the withdrawal, they asked for Rs 15 lakh in commissions. When he paid up, he was asked to cough up another Rs 15.12 lakh as income tax. He paid up this time, too, but still didn’t get the money back. 

Shruthi R, 53, from Bengaluru, invested Rs 20 lakh and was asked to pay a 20 per cent commission to withdraw it.

When Prakash L, 38, a techie from Bengaluru who took a personal loan to invest Rs 18 lakh, sought the withdrawal in late October, he was shown a fake letter from the US Securities and Exchange Commission and asked to pay a 30 per cent penalty. 

Rs 17.5 lakh frozen: Police

S Girish, Deputy Commissioner of Police (Bengaluru West), said that of the Rs 70 lakh lost by one victim, Rs 16 lakh was frozen, while a response from the bank in the second case was awaited. 

B M Laxmi Prasad, Deputy Commissioner of Police (Bengaluru Northeast), said: “Approximately Rs 19 lakh was transferred by the victim of which Rs 1.50 lakh has been frozen. Our officers are investigating which server the app used by the victims is connected to.”