125 from six districts fall victim to stock market swindle

Mysuru: A massive financial fraud has come to light in Mysuru, where over 125 unsuspecting individuals were duped of more than Rs. 80 crore. The accused lured victims with promises of high returns through stock market trading.

The prime accused are S. Shruthi, a resident of an apartment in Bengaluru; Ramachandra Hegde, a priest from Krishnamurthypuram in Mysuru and Rajkumar, who resides near Ballal Circle, Mysuru. All three allegedly orchestrated the scam under the guise of stock trading, siphoning off crores of rupees.

Inspector Sunil of the Mysuru District CEN (Cyber Economic and Narcotics) Police Station registered the case and arrested Shruthi and Ramachandra Hegde. Though both were released on bail, the third accused, Rajkumar, has secured anticipatory bail.

Modus operandi

Shruthi and her associates had opened an office in Hootagalli and began contacting potential investors. They claimed to have made quick fortunes through stock marketing and promised extraordinary returns to anyone who invested.

Tempted by the prospect of high profits, over 125 individuals from Mysuru, Mandya, Chamarajanagar, Chikkamagaluru, Hassan and Bengaluru invested large sums through cash and bank transfers.

In return, the accused issued bank cheques and promissory notes. However, when they failed to deliver the promised profits, the fraud became evident.

Some victims approached DIGP (Southern Range) Dr. M.B. Boralingaiah and explained the situation. He immediately directed SP N. Vishnuvardhana to take appropriate action.

Treating the case with urgency, SP Vishnuvardhana instructed the District Cybercrime, Economic Offences and Narcotics (CEN) Police to register a complaint and begin an investigation. Inspector Sunil subsequently arrested Shruthi from her Bengaluru apartment and brought her to Mysuru.

During interrogation at CEN Station, it was revealed that Ramachandra and Rajkumar had also played active roles in collecting funds. Acting swiftly, the Police arrested Hegde as well.

Sources indicate that he was granted bail on Oct. 30, while Shruthi had secured bail about a month ago. Rajkumar remains out on anticipatory bail.

The victims include businessmen, the son of an engineering college principal, a retired Dy.SP, IT-BT professionals, industrialists, school teachers, college lecturers and other professionals.

Despite years of Police awareness campaigns on online fraud and cybercrime, it is ironic that educated and intelligent individuals continue to fall prey to such scams driven by the lure of quick money.

The accused lured people from Mysuru and surrounding areas with promises of high returns from trading and defrauded them of crores of rupees. The CEN Police have arrested the suspects and are investigating the case. The public should remain vigilant about online fraud.

— N. Vishnuvardhana, Superintendent of Police, Mysuru