Share trading firm dupes 7 investors of Rs 5 crore, probe on

  • | Friday | 10th November, 2023

PUNE: The Economics Offences Wing (EOW) of the Pune police is investigating a Bibvewadi-based share trading firm accused of cheating seven investors of Rs5.12 crore between February and October this year on the promise of high monthly returns on investments.One of the victims, a retired manager (67) from Mukundnagar, lodged a complaint with the police on Wednesday.According to the complaint, five officials from the firm promised 10-14% monthly returns on investment and collected money from them in the range of Rs 25 lakhs to Rs 75 lakh each.The victim invested Rs 2.20 crore, while his friends and family members invested the remaining amount, the complaint stated.The firm paid the promised returns till April this year but afterwards, stopped the payments. The officials resorted to evasive replies when the victims reached out to them for the returns, the police said.A case of cheating has been registered with the Sahakarnagar police. Assistant inspector Mayur Vairagkar of EOW, who is investigating the case, told TOI, The victim came to know about the share investment schemes of the firm from a friend. He visited the firm office and discussed various investment schemes with the firm, following which he decided to invest. The firm officials won the confidence of the investors by promising monthly returns on the investments.He said, The victim made the investment by transferring the money to the bank accounts provided by the officials. He also discussed the schemes with his relatives and friends, who also invested money in the firms schemes, he said.The suspects transferred only Rs 2.80 lakh to the victim and refused to return the rest of the money. The office was functioning till last month. We are yet to verify if the office is still operating, he said.Additional commissioner of police (Crime) Ramnath Pokale told TOI, We are repeatedly recording cases of cheating against persons claiming to be share brokers or operating share trading firms. We have registered over 10 such complaints so far.He advised people to wisely invest money to avert such cases. People should exercise due diligence before handing over money to the fraudsters, he said.We also published the following articles recentlyWarren Buffetts firm reports $12.8 billion loss as investments fall but its insurers performed wellWarren Buffetts Berkshire Hathaway reported a $12.8 billion loss in Q3 due to a decrease in the value of its investments. However, the companys owned businesses, particularly the insurers, performed well. Berkshires operating profit increased by nearly 41% to $10.8 billion. The insurance unit benefited from low catastrophe losses and improved profits from Geico. Berkshire repurchased $1.1 billion of its own stock in the quarter but has not made any major investments or acquisitions this year. The company currently holds $157.2 billion in cash.Inflation beating returns Why its the right time to invest in government securitiesLong-tenure bonds are gaining popularity among conservative Indian investors due to their accessibility and high safety. The Reserve Bank of Indias Retail Direct platform allows retail investors to access government securities (GSecs) with negligible credit risk. These bonds provide stable returns, making them attractive during a cycle of rising interest rates. Investors can choose from 10-, 20-, 30-, 40-, and 50-year bonds, with interest rates ranging from 7.32% to 7.55%. Financial planners suggest building a ladder by purchasing bonds of different maturities to maximize cash flows and minimize reinvestment risk. However, liquidity may be a challenge when selling in the secondary market.90 Pune investors fall for high returns bait, lose Rs 3.39-crore in share trading fraudPolice in Pune, India are investigating a share trading fraud worth Rs 3.39 crore ($450,000) by an investment firm operating in Pune and Mumbai. The firm, run by five individuals including two women, promised high monthly returns to investors but cheated at least 90 people between September 2021 and October 2022. Victims invested amounts ranging from Rs 15,000 to Rs 26 lakh ($200 to $345,000) with the firm. The police have registered a case of cheating and criminal breach of trust against the suspects.

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