Asia Press Agency

Tag: Fraud

  • Gurugram Consulting Firm Executive Defrauded of Rs. 38 Lakh

    Gurugram Consulting Firm Executive Defrauded of Rs. 38 Lakh

    A Gurugram-based consulting firm executive has become the latest victim of a sophisticated cryptocurrency scam, losing approximately ₹38 lakh to fraudsters. The incident underscores the dangers posed by online fraud and the need for increased vigilance among internet users, particularly when it comes to investments and financial transactions.

     

    According to reports, the victim, identified as Naman Aggarwal, met the fraudster, Ridhi Sharma, on a popular matrimonial website, jeevansaathi.com, in November 2023. Sharma claimed to be residing in London for the past five years and hailed from Kolkata. She allegedly gained Aggarwal’s trust over time before luring him into investing in a cryptocurrency called deuncoin.

     

    The modus operandi of the scam involved Sharma persuading Aggarwal to invest ₹10 lakh initially in deuncoin, promising to transfer a similar amount to his trading account. To facilitate the investment, she directed Aggarwal to a website called m.deuncoin.vip and communicated with him via WhatsApp. However, the promised transfer never materialized.

     

    In a further twist to the scam, Aggarwal received a message on WhatsApp from the purported customer support team of Deuncoin, claiming that the amount transferred by Sharma was flagged as suspicious and linked to money laundering activities. The message warned Aggarwal that unless he deposited an additional ₹10 lakh within 24 hours, his trading account would be frozen.

     

    Fearing the loss of his investment, Aggarwal complied with the demand and deposited another ₹10 lakh as instructed. However, instead of restoring his trading account, the fraudsters continued to demand more money under the guise of various charges and fees. Despite paying a total of ₹38 lakh, Aggarwal found himself trapped in a web of deceit with no way to recoup his losses.

     

    Realizing that he had fallen victim to a financial scam, Aggarwal filed a complaint with the Cyber Crime East police station in Gurugram. An FIR was registered against the unknown woman, Ridhi Sharma, and other fraudsters under Section 420 (cheating) of the Indian Penal Code (IPC).

     

    The case highlights the increasingly sophisticated tactics employed by cybercriminals to defraud unsuspecting individuals. By exploiting trust and leveraging the anonymity of online platforms, fraudsters like Sharma can easily deceive victims into parting with their hard-earned money.

     

    Cryptocurrency scams, in particular, have become prevalent in recent years, given the growing popularity of digital assets like Bitcoin, Ethereum, and others. Fraudsters often lure victims with promises of quick and lucrative returns, only to disappear with their funds once the investment is made.

     

    To combat such scams, authorities have urged the public to exercise caution and skepticism when approached with investment opportunities, especially those involving cryptocurrencies. It’s essential to conduct thorough research, verify the legitimacy of the parties involved, and seek advice from financial experts before making any investment decisions.

     

    In response to the complaint filed by Aggarwal, the cyber police in Gurugram have launched an investigation into the matter. They are working to track down the perpetrators and bring them to justice. Meanwhile, Aggarwal and other victims of similar scams serve as a reminder of the need for enhanced cybersecurity measures and public awareness campaigns to prevent such incidents in the future.

     

    As the digital landscape continues to evolve, individuals must remain vigilant and proactive in protecting themselves against online fraud and financial scams. By staying informed, exercising caution, and reporting suspicious activities to the authorities, we can collectively work towards creating a safer and more secure online environment for all.

  • Sebi Has Statutory Authority to Lift Corporate Veil

    Sebi Has Statutory Authority to Lift Corporate Veil

    The Securities and Exchange Board of India (Sebi) has declared that it has the legal authority to lift the corporate veil and ascertain the truth when the interests of investors are jeopardized or could be endangered. This statement was made during the proceedings of the Bombay Dyeing case before the Securities Appellate Tribunal (SAT). In this case, Sebi is contesting Bombay Dyeing’s petition against its October 2022 order that banned the company, its promoter Nusli Wadia, and several others from participating in the capital market.

     

    The order issued by Sebi in October 2022 also imposed a penalty of ₹15.75 crore on Bombay Dyeing & Manufacturing for alleged fraud related to the falsification of the company’s financial statements.

     

    During the hearing, Gaurav Joshi, senior counsel for Sebi, argued that the Securities and Exchange Board of India Act (Sebi Act) empowers the regulatory authority to take actions in the interest of safeguarding the investors’ interests. Therefore, the act of lifting the corporate veil to identify those who control a regulated entity is within Sebi’s legal purview. Joshi emphasized that without such authority, Sebi would be unable to address many corporate misdeeds that could jeopardize investors’ interests.

     

    He cited a previous SAT order in the case of Sahara Asset Management Co. and Ors. vs. Sebi, which upheld Sebi’s authority to protect investors’ interests by lifting the corporate veil when necessary.

     

    Joshi informed the court that between 2011-12 and 2017-18, Bombay Dyeing falsely inflated its profits by allegedly selling apartments to Scal Services Ltd., another Wadia Group firm, as part of a memorandum of agreement. This resulted in an overstatement of profits by ₹1,302 crore and sales by ₹2,493 crore. He further asserted that the company’s promoters were aware of these transactions and that they were not genuine.

     

    One of Bombay Dyeing’s main contentions was that the company did not directly deal in securities, and therefore, violations of the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) regulations should not apply to them.

     

    Citing the Supreme Court case of Sebi vs. Kanhaiyalal Baldevbhai Patel, the senior counsel argued that even if an entity is not directly involved in securities trading, it can still be held liable for PFUTP violations if it deals with securities-related information or misinformation that affects others in the market.

     

    The Bombay Dyeing case has significant implications for Sebi’s ability to take action against entities that may not directly trade in securities but are involved in activities that impact the securities market and investors’ interests. The outcome of this case will clarify the extent of Sebi’s authority in such matters and its ability to protect the interests of investors in the Indian capital market.

     

    Investor protection and market integrity are paramount in financial regulatory matters, and Sebi’s assertion of its statutory authority to lift the corporate veil underscores its commitment to upholding these principles.

  • Trump Defends Against New York Attorney General’s Lawsuit

    Trump Defends Against New York Attorney General’s Lawsuit

    Former President Donald Trump is countering a lawsuit brought by the New York attorney general accusing him of fraud, defending both his real estate business and his tenure as president. His recently revealed testimony during a private questioning in April offers insights into his perspective on the legal action and his own achievements. The lawsuit, led by Attorney General Letitia James, revolves around allegations of false financial declarations and property valuations made by Trump.

     

    During his testimony, Trump asserted that his company possesses ample funds and emphasized that he prevented a nuclear war during his presidency, thereby saving countless lives. He expressed dissatisfaction with the legal action and urged for its dismissal. Trump’s testimony reflects his view that he should not have to justify himself in this context, given his contributions to the city’s skyline.

     

    The attorney general’s office has released a 479-page transcript of Trump’s deposition, along with legal submissions, ahead of a scheduled September 22nd hearing presided over by Judge Arthur Engoron. These filings could potentially lead to a resolution of the case before its October trial. The lawsuit alleges that Trump overstated his net worth by as much as 39% in certain years, equivalent to over $2 billion, according to evidence presented by James.

     

    Trump’s assertion during the deposition reflects his belief that he played a pivotal role in global matters during his presidency, including his hard line on China, averting Russia’s invasion of Ukraine, and preventing North Korea’s nuclear attack. He contends that he considered being president “the most important job in the world.”

     

    Attorney General Letitia James is seeking summary judgment and immediate verdict endorsement from Judge Engoron, asserting that Trump and his company defrauded lenders, insurers, and others through false financial statements. The case’s outcome hinges on whether Trump’s financial statements contained falsehoods and whether these statements were used in business dealings.

     

    Trump’s lawyers are requesting the dismissal of the case, arguing that certain allegations are barred by the statute of limitations and that James lacks standing to sue. Despite potential rulings on the fraud claim, other claims in the lawsuit may proceed to a non-jury trial if the case is not settled.

     

    The lawsuit is one of several legal challenges that Trump faces as he seeks a return to the White House. While he labels the lawsuit as politically motivated, its allegations about his pre-presidential financial declarations and valuations have placed him in legal scrutiny.

  • Surge in Online Scams: How to Protect Yourself from Fraud

    Surge in Online Scams: How to Protect Yourself from Fraud

    The occurrence of online scams in India has seen a notable surge, leading to individuals falling victim to fraudsters and losing their hard-earned money to meticulously orchestrated schemes.

     

    Fraudsters often entice unsuspecting individuals with promises of quick and effortless income through part-time employment or online tasks. These scams are frequently initiated via platforms like WhatsApp, where individuals are tempted with opportunities to earn money from the comfort of their homes.

     

    In a recent incident reported by PTI, a Mumbai resident became a victim of one such scam, resulting in the loss of approximately ₹18 lakh. The 48-year-old resident from Kharghar was initially lured by the prospect of fast cash. He carried out specific assignments and received some initial payments. However, he ended up losing ₹17.9 lakh after transferring money to various bank accounts, hoping for greater returns. Unfortunately, he never received any returns, and the funds were sent to four separate bank accounts. The Navi Mumbai cyber police initiated an investigation and filed a cheating case in response to his complaint.

     

    To protect yourself from falling victim to online scams, consider implementing the following precautions:

     

    • Stay Vigilant: Approach unexpected emails or messages with skepticism, especially if they appear suspicious. Be cautious of enticing offers that promise quick and easy income.

     

    • Avoid Clicking on Links: Refrain from clicking on links sent by unfamiliar sources, as they could lead to unsafe websites or downloads that may compromise your security.

     

    • Guard Personal Information: Protect your personal information and avoid sharing it with unknown callers, particularly if they request it over the phone or through text messages, especially if it involves financial transactions.

     

    • Verify Requests: Always verify requests, especially those involving sensitive actions or information. If in doubt, reach out to the relevant organization or individual directly through trusted channels to confirm the legitimacy of the request.

     

    • Take Swift Action: If you suspect a scam or phishing attempt, act swiftly. Delete suspicious messages or terminate calls without disclosing any personal or financial information.

     

    Safeguarding yourself from online scams requires a cautious and thoughtful approach to unexpected offers. By staying vigilant, protecting personal information, and verifying requests, you can significantly reduce the risk of falling victim to online fraud. Remember that taking preventive measures is crucial in today’s digital age to ensure your financial and personal safety.

  • Bengaluru Youth Arrested for Swindling Amazon

    Bengaluru Youth Arrested for Swindling Amazon

    In a significant case of online fraud, a 22-year-old Bengaluru resident, Chirag Gupta, has been apprehended for masterminding an elaborate refund scam that duped Amazon of more than 20 lakh rupees. Gupta, an engineering student residing in North Bengaluru, operated as part of a gang led by a former Amazon employee, and their modus operandi involved faking the return of high-value items like iPhones and MacBooks.

     

    Reports indicate that Gupta, in collaboration with a friend, orchestrated the sham returns of 16 iPhones and 2 MacBooks. Gupta’s accomplice manipulated the backend system to simulate returned items, while Gupta secured the corresponding refunds without arousing suspicion. The transactions predominantly involved credit cards and UPI transactions, amounting to approximately 3.4 lakh rupees.

     

    Among the notable purchases were an iPhone 14 Pro Max valued at 1.27 lakh rupees on May 15, an iPhone 14 worth 84,999 rupees on May 16, and two iPhone 14 models priced at 90,999 and 84,999 rupees on May 17.

     

    Amazon began to grow suspicious of Gupta’s purchasing patterns due to an influx of complaints, prompting an investigation into the matter. The company uncovered that the items in question were never genuinely returned despite being marked as such on the backend. Intriguingly, all the purchases were linked to the same address, emphasizing the fraudulent nature of the operation.

     

    Upon inspection, law enforcement authorities confiscated gadgets worth 20.34 lakh rupees from Gupta. Additionally, approximately 30 lakh rupees across multiple bank accounts associated with the accused were frozen.

     

    Further revelations from the probe unveiled an unexpected twist: Gupta and his associate conducted crypto transactions to profit from the scam. Gupta received commissions from the profits earned on each item that they sold via cryptocurrency transactions. The sophistication of the scam highlights the evolving tactics that criminals are using to exploit online platforms and payment systems for personal gain.

  • Education Migration Services Owner: Defrauding Indian Students

    Education Migration Services Owner: Defrauding Indian Students

    Brijesh Mishra, the owner of Education Migration Services located in Jalandhar, is facing charges laid by the Canadian Border Services Agency (CBSA) for defrauding 700 Indian students. The charges are linked to violations of four sections under the Immigration and Refugee Protection Act (IRPA), as reported by CIC News. The fraud came to light when it was discovered that these students were issued false letters of admission from Canadian educational institutions. Many of these students had already completed their studies, gained work experience in Canada, and were in the process of applying for permanent residence when the deception was uncovered.

     

    As the investigation progressed, it was revealed that Mishra the owner of Education Migration Services had charged these students exorbitant amounts for college admission and visa applications. Despite the firm’s subsequent closure, Mishra remained elusive until recently when he was apprehended while living illegally in Surrey, British Columbia. His visa had been revoked in 2019 due to involvement in “ghost consulting.”

     

    In response to this situation, Canada’s immigration minister, Sean Frase, emphasized that students who knowingly engaged in rule-breaking would face consequences, including removal. However, students who were unaware of the fraud would not be deported. Instead, they would be issued temporary resident permits, allowing them to continue their stay in Canada.

     

    Frauds with international students:

    International students are often vulnerable targets of fraud, with “ghost consultants” being a common form of deception. These unlicensed immigration representatives pose as legitimate agents offering services to international students, only to vanish after receiving high fees. Other fraudulent schemes include phishing, fake job offers, and housing scams. To safeguard against such scams, CIC News advises international students to be cautious and thoroughly verify any offers or opportunities that seem too good to be true. Taking the time for proper verification can protect them from falling victim to fraudulent schemes.