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

The City Police have written to the Director General of Police (DGP), Chennai, to consider transferring a multi0000000 online trading scam to Crime Branch – Criminal Investigation Division (CB-CID) Police. The case was registered against persons of a city-based private broking services firm on Saturday by the Central Crime Branch (CCB) after clients of the concern lodged police complaints that the trading firm usurped their money.A senior police officer said that the request to transfer the case was made as the number of investors and the quantum of money lost runs to several0000000. “Moreover the victims are from other cities and States as well and it will need inquiry by an independent body like CB-CID,” the officer said. He added that the CCB would continue investigations till the case was transferred. 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 in their account and carried out transactions. 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 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 are lodging a complaint with Securities and Exchange Board of India (SEBI) as the firm that cheated them is a members 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 in Chennai, Salem, Erode, Madurai and Gobichettipalayam (Erode) in Tamil Nadu and Kozhikode and Kochi 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 was on for the accused, as they were said to be under hiding. The police said that persons cheated by the firm can lodge complaints with the CCB in Coimbatore or with police concerned in the respective cities or districts.