Mumbai Fraud Case: Malabar Hill Businessman Loses Rs 2.55 Crore in Fake US Medical Deal

A highly organised international fraud case has surfaced in Mumbai, where a South Mumbai based chemical industrialist was allegedly cheated of around 2.71 lakh US dollars (approximately Rs 2.55 crore) in the name of an American medical company. The accused reportedly used fake emails, forged documents and an international logistics network to divert the entire consignment. Preliminary findings also indicate that the goods were later routed from the United States to Africa. Malabar Hill Police have registered a case and initiated an investigation.

According to police, the victim is a 54-year-old businessman and Director of a Private Limited Company. His company manufactures Potassium Iodide (USP), a key raw material used in the pharmaceutical sector. The company operates a manufacturing plant in Gujarat, and a corporate office in Mumbai. The business has been running for more than three decades.

The fraud allegedly began with an email received by the company on January 20, 2026, seeking supply of 14,000 kilograms of Potassium Iodide for Sanford Medical Center in North Dakota, United States. The proposal was routed through a broker identified as City Marketing Company. After preliminary verification and discussions, the rate was fixed at 67.85 dollars per kilogram and the total transaction was finalised at 2,71,400 dollars.

Initially, the shipment was to be sent by sea cargo. However, the alleged buyer later cited an emergency requirement and requested immediate dispatch through air cargo. Believing the request to be genuine, the businessman sent the 14-tonne consignment on February 10, 2026, from Chhatrapati Shivaji Maharaj International Airport in Mumbai through KLM Airlines.

Police said the payment process appeared secure, as all required documents including airway bill, invoice, packing list, certificate of origin and delivery order were forwarded through a private bank’s to Bank of America in the United States. As per the agreed process, the buyer’s authorised representative was expected to collect the documents and release payment.

The fraud came to light when payment was not received within the stipulated time. Information obtained from KLM Airlines allegedly revealed that on February 25, 2026, at Fargo Airport in the United States, a transport company identified as Radiant took possession of the shipment using a fake delivery order. Bank of America reportedly informed that the original documents sent by the exporter had not been collected by any authorised person.

The matter became more serious when tracking inputs allegedly showed that the consignment was later moved from Houston Port in the United States to Mombasa, Kenya, through a container shipment. Investigators suspect the use of illegal trade channels or an organised international diversion network.

The role of broker City Marketing Company has also come under scrutiny. The businessman reportedly contacted the broker several times, but was only informed that the goods had been delivered, while further details were allegedly withheld.

Based on the complaint, police have registered a case of cheating, criminal breach of trust and misappropriation against the concerned American company, the transport agency and the broker. Considering the suspected involvement of an international syndicate, investigators may seek assistance from Interpol or other global agencies.

The case has once again highlighted rising risks in international trade, where cyber fraud and document manipulation are emerging as major threats. Experts believe third-party verification, bank guarantees and on-ground authentication should become mandatory in such transactions to prevent organised fraud of this nature.