Mumbai: Director Sunil Jain and owner Dhiren Shukla and Anurag Shukla from ‘Artha Vriddhi Securities’, a stock broking firm, have been arrested on July 23, for a massive fraud of cheating number of investors to the tune of more than Rs 10 crore, and one of their business consultant Jairaj Bafna is now on the run.
Funds and stocks of 800 investors are stuck as their trading terminals have been blocked by the National Stock Exchange (NSE). Artha Vriddhi Securities, a stock broking firm operating from Vile Parle, Mumbai has been cheating investors for the last few years. Sunil Giri, partner of Blue Sea International had unearthed and exposed the massive financial fraud by the Stock Broking firm.
The modus operandi of the fraud stock broking firm was multi-layered and well-planned. They used to open Trading Accounts of the relatives of Directors in the same firm and do the reverse trades of clients and transfer profits to their relative’s accounts. Reverse trading has been done in the F & O section mainly.
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.
Director Sunil Jain and Business Consultant (an Employee) Jairaj Bafna have siphoned off about 9.6 crores funds to their relative’s accounts through ‘Reversed Trading’ and ‘Unauthorised Trading’ in clients’ accounts and misusing their funds deposited in Artha Vriddhi Securities.
Blue Sea International had received about 300 E-mails with attachments which contained profit and loss statements with complete details of trades date-wise. On verifying the same from the NSE it was found that all these trades were shockingly completely false and in reality, some other trades were executed which were not informed to Blue Sea International.
The NSE Grievance Redressal Committee (GRC) 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. The NSE GRC admitted, calculated the claim amount for the loss caused to Sunil Giri at Rs. 1,54,00,000. (Order dated 8th November 2021)
Shares held in client Demat accounts were sold without informing the clients and shown as loss to clients. Number of unauthorised trades were carried out in various clients’ accounts. The clients approached Sunil Jain (Director) for clarity and refund, he would abuse and threaten them and arrogantly dared them to take the legal recourse.
According to sources, at present there are about 15 complaints with NSE for fraud against this firm. Their trading terminals have been blocked by NSE and Vile Parle police have filed a First Information Report (FIR) on July 21 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.
Upon verification of bank statements there is a crystal-clear sign 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.