A 44-year-old Mumbai man, Ashish Shah, has been arrested for allegedly defrauding over 400 people by posing as a SEBI-registered agent. Shah, a resident of Versova in Andheri, convinced individuals to invest in stocks, promising returns of up to 84%.
The scam, which amounts to Rs170 crore, was uncovered when a complaint was initially registered at Versova police station and later transferred to the Crime Branch. Shah was arrested in Chhatarpur, Madhya Pradesh, following a manhunt.
Deputy Commissioner of Police (Detection), Datta Nalawade, revealed that Shah lacked any real knowledge of the stock market. “He accepted payments in cash and cheques but operated a fake trading company,” the DCP said. Police also seized four vehicles, two flats, 1,900 grams of gold, and Rs25 lakh in cash during a raid at his home.
Some victims had borrowed money to invest in Shah’s fraudulent scheme. Cases have been registered against him in both Mumbai and Tamil Nadu. Authorities urge the public to verify investment agents and avoid schemes offering unrealistic returns.
Shah has been booked under sections related to criminal breach of trust, cheating, and the Maharashtra Protection of Interest of Depositors Act. Investigations are ongoing as he remains in police custody.