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Scam Alerts: SEBI Dings Hedge Fund, then Whatsapp Tipster and more…


We’re starting the week with a few fraud cases.

Factorial Master Fund Gets Dinged for Insider Trading L&T Financials

An offshore fund based in the Cayman islands, Factorial Master Fund supposedly made Rs. 20 cr. profit on L&T Financial Holdings, says SEBI. L&T FH was going to place shares to institutions at a price far lower than current market prices, and Factorial was aware of that. They shorted in the futures market at prices above Rs. 80, and then bought into the offer at 71.5.
How did SEBI think they were the only guys involved? They were 84% of the built up open interest on that day!
The impact: Factorial can’t buy or sell more shares till the final order. They don’t buy directly – they use Offshore Derivative Instruments (akin to P-Notes) to trade, and they aren’t directly answerable to SEBI, and SEBI should take a tough stance and ban the people behind this organization or notify this crime to whichever country they now live in.

SEBI Also Exposes Ludicrous Whatsapp Investment Scam

In another note, SEBI has found another fraudulent case of random jokers giving ludicrous tips like a guaranteed investment call and so on:

“My company Indian trading provides tips, 25000 deposit payment profit 30% share. Sir 50000 only investment and 200% sure guarantee call. 1 Re no loss”
“Earn more than 25 to 50 Lakh per month in our Super Jackpot Stock-Mcx- Currency Tips – *********93”
2. These messages also carried certain enticing claims such as:
(a). total profit `9 lakh in `2 lakh capital;
(b). `9 lakh in one month with `50,000/- capital;
(c). earn more than `25 lakh to `50 lakh per month in our superjackpot stock – MCX;
(d). Profit `8 lakh in `1 lakh capital;
(e). Profit `18 lakh in `1 lakh capital.

It’s illegal to guarantee something like this without any basis, and is a fraud to mislead people in this manner.
The worst part? That it seems people with similar names were involved in an earlier, similar scam. SEBI will investigate.
But what’s really sad is that apart from telling them “not to deal with securities” there is no other action.

Saradha Scam: 300 bank accounts, 200+ companies

It seems the Saradha ponzi scheme has involved a lot of back-end work for the tricksters. They created more than 300 bank accounts, with more than 200 companies created for the purpose:

In one of the most voluminous investigations being carried out by the agency involving lakhs of multi-layered transactions, it was allegedly found that “more than 90 per cent of such companies existed only on paper and only 17 companies out of the 224 companies actually had carried out some business.”
The rest, investigators claimed, were floated as ‘dummies’ to act as a cover for unleashing the alleged ponzi scheme.

Nearly 2000 cr. is still due.

Some Hope: India recovers 1818 cr. from AgustaWestland

In some relief, one large chopper scam, where an Italian company gave crappy choppers to the Indian Air Force for VIP transport, has had to return all the money it took (1818 cr.) after an Italian court order.
We hope there will be more action in the NSEL Scam as well. EOW has been making noises, but the real deal will have to come from a judgement in court.


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