The Economic Offences Wing (EOW) of Surat Police has arrested Jiyajur Raheman Syed, the CEO and Director of LFS Broking Pvt. Ltd., in connection with a major Ponzi scheme that defrauded 55 investors in Surat of Rs2.48 crore. Syed, who was incarcerated in Cuttack Jail, was apprehended on a transfer warrant and is now in police custody for a five-day remand as the investigation continues.
The case dates back to 2020, when Devang Shah, a resident of Gopipura, Surat, was introduced to LFS Broking’s portfolio management services by his acquaintance, Nirmal Santara. Nirmal, who owns a TV repair business near Chauta Bazaar, claimed to have been investing in the company’s PFS scheme through his cousin, Hemant Kumar, who lived in West Bengal. Kumar was presented as a senior manager of the company, which purportedly operated out of the UBI Building in Hooghly, West Bengal.
Initially, the company promised high returns by investing 80% of the funds in blue-chip stocks listed on the National Stock Exchange. Between 2021 and 2023, the company consistently delivered returns of 2% on the investments made by the complainants. However, the company suddenly ceased operations, and the promised returns stopped. This led to Devang, Nirmal, and 53 other investors losing their money.
The total fraud amounting to Rs2.48 crore was reported to the Economic Offences Prevention Wing of the Crime Branch, prompting an investigation that eventually led to Syed’s arrest. Syed, along with Kazi Mehmood, the company’s director, allegedly ran the scheme under the guise of legitimate investment opportunities, luring unsuspecting investors with false promises of profitable returns.
The police are now intensifying their investigation to uncover the full scope of the operation and trace the flow of funds. With the arrest of the CEO, authorities hope to dismantle the fraudulent network and recover the defrauded amounts for the victims.
