Chhatrapati Sambhajinagar
LFS Broking Company lured hundreds of investors by promising a 2% monthly return but ultimately defrauded them of crores. This nationwide scam has now surfaced in the city, with police registering cases against the firm’s directors and managers. So far, 25 investors have come forward, reporting a collective fraud of Rs 1.44 crore.
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Investors duped with false promises
The accused include Jiazur Rahman (West Bengal), Sonal Bhakta (Gujarat), Somitra Sinha, Sourav Adhikari, Sejal Megji Desar Chandra, Dilipkumar Maiti, Vinod Salve (City Manager)and Vinod Mane. Subhash Taur (27), a resident of Balajinagar and a computer businessman, was searching for share market classes in August 2022 when he met Vinod Mane and Vinod Salve. Both men managed LFS Broking’s city operations and convinced Taur and his friends to invest by praising the company’s nationwide reputation. They assured investors of security by providing confirmation letters for investments between Rs 1-5 lakh and legally binding agreements for investments above Rs 5 lakh. Trusting them, Taur invested nearly Rs 10 lakh over five months.
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Returns stopped after June 2023
Until June 2023, Taur received Rs 1.87 lakh in returns, and other investors also received payments. However, from July 2023 onwards, the company stopped disbursing returns. Mane and Salve became evasive and even threatened investors, warning them that filing complaints would result in no refunds. Realizing they had been defrauded and 25 investors approached the police.
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Company owner already in custody
In June 2024, SEBI banned LFS Broking Company after its illegal activities came to light. The firm’s owner, Syed Jiazur Rahman, was barred from operating as a stockbroker for five years. In July 2024, the Economic Offenses Wing (EOW) in Bhubaneswar arrested him in West Bengal for a Rs 100 crore fraud case. He is accused of defrauding 6,000 investors across Odisha, West Bengal, Bihar, Maharashtra, Jharkhand, and Gujarat, amounting to Rs 600 crore.
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Salve remanded to police custody
After the case was registered, Economic Offenses Wing Sub-Inspector Ashok Avchar arrested Vinod Salve on Wednesday night. Meanwhile, Mane and other accused remain absconding. The court has remanded Salve to police custody until February 27, confirmed Avchar. Salve had been employed at LFS for the past eight years.
(WITH PHOTO)