CB-CID likely to investigate multi-crore online trading scam

The City Police have written to the Director General of Police (DGP), Chennai, to consider transferring a multi-crore online trading scam to Crime Branch – Criminal Investigation Division (CB-CID) Police. The case was registered against the persons at the top management of a city-based private broking services firm on Saturday by the Central Crime Branch (CCB) of the Police after clients lodged police complaints that the trading firm usurped their money and locked down. A senior police officer here said that a request to the transfer the case was made by a number of investors and the quantum of money swindled runs to the tune of several0000000 rupees. “Moreover the victims are from other cities and States as well and it will need inquiry by CB-CID,” the officer said. The CCB will continue investigations till the case is transferred, he added. According to the police, preliminary inquiries revealed that the firm had more than 5,000 clients. A police official said that the firm had pooled in the money of clients into its account and carried out transactions that could not be controlled by the clients. Complainants had stated that they faced trouble since August 14 and the firm had promised to set things right. “But we could not avoid a loss or buy or sell commodities from last Friday. It was then we realised that we were being cheated,” says another complainant who also alleged that the firm that had its shutters down from Thursday but was continuing to trade using his account for Rs. 700000 till Friday. Investors said that they would be lodging a complaint with Securities and Exchange Board of India (SEBI) as the firm that cheated them is a member of the NSE, BSE, MCX, NCDEX, NMCEIL and ACE. The broking firm was established in 2008 with its head office at R.S. Puram. The firm has a total of 11 branches including four in Coimbatore, one each at Chennai, Salem, Erode, Madurai and Gobichettipalayam (Erode) in Tamil Nadu and Calicut and at Cochin in Kerala. The accused, his wife, vice chairman and staff were booked under section 120B (punishment for criminal conspiracy), 409 (criminal breach of trust by public servant, or by banker, merchant or agent) and 420 (cheating and dishonestly inducing delivery of property) of Indian Penal Code. As many as eight bank accounts of the accused were frozen on Saturday and a search is on for the accused. A police official said the Coimbatore-based firm had pooled in the money of clients into its account and carried out transactions