Man arrested after Juhu businessman loses ₹2.48 crore in online share trading fraud

MUMBAI: The cyber police have arrested a Bengaluru resident in connection with an online fraud in which a businessman from Juhu lost ₹2.48 crore. The accused allegedly lured the businessman into trading in shares, claiming it was being done through a renowned stock trading platform.

The arrested accused was identified as Prashant S Shivamodia, 29, a resident of Ramanagara, Bengaluru. The cyber police said they have blocked ₹16 lakh in his bank accounts.

The complainant allegedly transferred ₹87 lakh to one of the accused’s bank accounts. The police then traced the account holder, who was brought to Mumbai and arrested. Another accused, S Shridhar, who was also using the same bank account, is still at large, and the police are looking for him.

According to the police, the complainant received a WhatsApp message on May 8 from someone who identified themselves as Kalpana Ashok. The message contained an application form to open an account for trading in shares through a renowned stock trading platform, along with a link to join a WhatsApp group.

The WhatsApp group, which had several members, contained posts with tips and instructions on how to earn high returns by investing in shares, the complainant told the police. Some of the messages claimed that investors can earn up to 20% profit by investing in certain shares and initial public offerings (IPOs). Besides, the complainant also started getting individual messages containing investment tips.

The complainant then opened an account and got a link to download a mobile app, purportedly of the stock trading firm, through which he was supposed to invest and track his money. He started by investing ₹3 lakh on May 13 and earned a profit. By June 13, the complainant deposited ₹2.48 crore in various shares and IPOs as suggested by the group moderators. Soon, his investment grew exponentially and crossed the ₹20 crore mark, said a police officer.

However, when the 67-year-old tried to withdraw money, he found that he couldn’t. When he contacted the group moderators, he was told that he could withdraw only after paying 20% of the profits.

On June 19, the complainant met a representative of the stock trading firm and learned that it did not have a WhatsApp group or app. He then approached the police, and based on his complaint, a case was registered at the South Cyber police station.