The Economic Offences Wing (EOW) of Odisha arrested Saiyyad Jiyajur Rahaman, the proprietor of LFS Broking & PMS Services, at Kolkata’s Netaji Subhash Chandra Bose International Airport upon his return from Dubai. This arrest follows a complaint alleging a Rs600 crore share trading scam.
Rahaman, a native of West Bengal, had previously been detained by immigration officials after a lookout circular was issued against him. He will be presented in a Cuttack court.
According to the complaint by Arun Kumar Pattanaik from Dhenkanal, Rahaman duped him and his relatives of over Rs20 lakh, promising a monthly return of 2% on investments. Investigations revealed that Rahaman misled hundreds of investors across Odisha, West Bengal, Bihar, Maharashtra, Jharkhand, and Gujarat, collecting substantial sums under false pretenses.
Initially a director of LFS Broking Pvt Ltd, which was registered with the ROC in Pune and authorized by SEBI, he later transitioned to running LFS Broking & PMS Services. Rahaman misappropriated investor funds by creating the impression that they were depositing money into a legitimate brokerage, amassing over Rs600 crore.
The EOW reported that he had collected around Rs100 crore from investors in Odisha alone. Rahaman’s fraudulent activities led SEBI to bar him from operating as a stock broker for five years. The investigation continues, with several incriminating documents seized.