If at all you are not aware about a Rs. 400 crore fraud happening in Citibank, Gurgaon Branch, which was unearthed on 28th December. Please find the story below
Shivraj Puri, a relationship manager at the Citibank Gurgaon branch, who allegedly sold investment products to high networth clients claiming that they would generate unusually high returns. He allegedly routed the fund garnered from HNI customers to stock market through brokerage firms like Religare Securities. complaint states that Puri had got a joint account opened in the names of Prem Nath, Sehna Prem Nath, and Deeksha Puri in September 2009. Earlier this month the bank checked the joint account and realised that there were large cash transactions from this account.
Besides, the bank received inputs from some of its customers that the branch had a specific scheme that promised a very high interest rate to the investors, which was not the case. Puri allegedly showed this forged circular to win the trust of prospective customers and to convince them to invest, and he was successful in tapping some major players. Investigations later showed Sebi never issued such a circular and the regulator has given this in writing to the bank, said an investigating officer.
According to the sources, after getting the big deposits, Puri generated forged bank slips and statements to the duped customers. He then siphoned off the money into the stock market. The main accused, Puri, was working with the bank for the past seven-eight years.
Much remains to be revealed about the alleged fraud and how much client money may have been diverted.
Lessons Learnt
- Don't trust blindly any non conventional investment option even if it is offered by big and reputed business houses.
- If you feel that the returns promised are unbelievable, it might be
- Check, if that investment option is available elsewhere
- An old phrase "Don't put all your eggs in 1 basket" This doesn't necessarily means putting all your money at 1 place , but one should have more than 1 contact points for their financial needs.
- Always ask for written brochure or document and in the event of doubt get that checked from Senior Officers of banks as well as regulatory bodies.
- Monitor/Review your investments periodically
