1 Firm, A Ponzi Scheme And Rs 1,600-Crore Scam: Probe Agency Files Chargesheet

Thousands were lured by profits and made to invest in schemes through a company named LFS Broking. People were assured quick returns, but an investor's worst nightmare came true; the schemes were Ponzi, and at least Rs 1,600 crore was swindled through the investments by the company. The Enforcement Directorate arrested the mastermind and has now filed a chargesheet in a court in Kolkata.

Syed Ziajur Rahman, the mastermind behind the scam, used to run the company, which was even registered with the markets regulator SEBI. Several other companies with similar names were also formed, like LFS Broking, PMS Services, etc. The ED said the accused collected money from people and invested it in fake firms, then the money was sent to the UAE through illegal channels like 'Hawala' by moving it through a network of companies and bank accounts.

The accused then purchased properties in the UAE, and a company was formed, Saiyad Jiyajur Goldsmith Co. LLC, which was in his name. Today, the ED has filed a charge sheet under the Prevention of Money Laundering Act (PMLA), Special Court in Kolkata.

So far, ED has arrested 6 accused, including Syed Jiyajur Rahman. Other accused include Anrul Islam, Sishir Kole, Mrinal Kanti Patra, Dilip Kumar Maiti and Badal Chandra Santra. All the accused are currently in judicial custody.

The probe agency earlier raided several locations of LFS Broking Pvt. Ltd. and its associates, in which many bank accounts were frozen and more than 250 properties were identified, including hotels, resorts and other real estate. The investigation of the case is going on.