In a bizzare case, Sunil Jain, Director, Dhiren Shukla and Anurag Shukla Owners of a Stock Broking Firm have brazenly cheated a sizeable number of investors to the tune of Rs.10 crores.
Reportedly, funds and stocks of 800 investors are stuck as their trading terminals have since been blocked by NSE.
Notably, Artha Vriddhi Securities, a Stock Broking Firm functioning from Vile Parle have been indulging in cheating several investors since last few years.
To unearth such a scam of Artha Vriddhi Securities, good Samaritan, Sunil Giri, Partner, BlueSea International helped in exposing the modus operandi of the fraud Stock Broking Firm. Ironically one Business Consultant Jairaj Bafna Is on the run.
Modus Operandi of the Stock Broking Firm:
Trading Accounts of the relatives of Directors in the same firm are opened and reverse trading of clients
and transfer profits to their relatives accounts are carried out. Mainly, Reverse Trading has been done in F & O section
Unauthorised Trading in clients’ accounts, providing falsified/modified/deliberately wrong Statements to them and failure to provide personalised/individual Trading platforms which are promised as an allurement at the time of opening the Trading Accounts have been the intent of the Stock Broking Firm.
It is revealed that Director Sunil Jain and Business Consultant (an Employee) Jairaj Bafna have blatantly siphoned off about Rs.9.6 crores funds to their relatives accounts through ‘Reversed Trading’ and ‘Unauthorised Trading’ in clients’ accounts and misusing their funds deposited in Artha Vriddhi Securties.
Blue Sea International seems to have received about 300 E-mails with attachments comprising profit and loss statements with Complete Details of Trades date-wise.upon verification of the same from the NSE it was found that all these trades were shockingly and completely False and in reality some other trades were executed which were not informed to Blue Sea International.
NSE Grievance Redressal Committee conducted elaborate proceedings and had books of accounts audited. The investigations revealed that client funds were indeed misused and siphoned off in directors’ relative accounts. NSE GRC admitted/calculated the claim amount for the loss caused to Giri at 1,54,00,000. (Order dated 8th November 2021)
Ironically, Shares held in client Demat accounts were sold without prior information to the clients and shown as informing Loss to clients.
Dubiously, innumerable unauthorised trades were carried out in the accounts of various clients.
When the clients would approach Sunil Jain (Director) for clarity and refund, he would cooly abuse and threaten them and aggressively dare them to go the legal way.
Presently, there are about 15 complaints with NSE for fraud against this firm.
Their trading terminals have been blocked by NSE and Vile Parle police has filed a FIR dated 21st July 2022 against Artha Vriddhi Securities Directors Sunil Jain, Anurag Shukla, Dhiren Shukla and business consultant Jairaj Bafna.
Many investors have lost their life time savings and main Culprits Sunil Jain and Jairaj Bafna are now operating through some other broking firm belonging to Sunil Jain relatives.
Ritesh Jain – Sunil Jain’s cousin brother and Urvi Milan Shah – Sunil Jain’s relative, Ruchita Bafna Jairaj Bafna’s sister account were used for receiving ill-gotten investors funds.
On verification of bank statements there is a crystal-clear signs of round tripping of funds between these director and relatives accounts. Investigations shall reveal how the ill-gotten wealth was laundered and its further layering took place.
Hello Mumbai tried to contact Investigative officer of the case on this issue but he was not available .
News Edit: K.V.Raman