Citibank scam: CEO Pandit, top brass named in FIR [Wikipedia defines 'FIR'...]
Sanjay Yadav & Dipak Kumar Dash, TNN, Jan 5, 2011, 01.09am IST
From: http://www.degaray.com/misc/134_Citibank.html
New Delhi - India
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Plot thickens as police arrest Hero group man
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Sanjeev K Ahuja , Hindustan Times
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Gurgaon, January 04, 2011
First Published: 00:55 IST(4/1/2011)
Last Updated: 01:00 IST(4/1/2011)
On the basis of information provided by prime accused Shivraj Puri, the Gurgaon police on Sunday night arrested Sanjay Gupta, associate vice-president of Hero Corporate Services Limited (HCSL), in connection with the multi-crore Citibank fraud. Gupta was arrested when he visited DLF City (Phase 2) police station to participate in routine investigation. Puri has been maintaining ever since he was detained that Sanjay Gupta was the mastermind behind the multi-crore fraud. The police who roped in experts gathered evidence before arresting him on the charges of conspiracy.
Senior police officials had called Sanjay Gupta as well as representatives of brokerage companies — Religare and Bonanza, two of the five brokerage firms, where Puri had invested the money — on Friday.
During interrogation, Puri revealed that till May last year he had been dealing in individual investment portfolios with Citibank in the capacity of relationship manager.
“I happened to meet Gupta in April. He told me to start dealing in corporate investment business also for bigger profit margins. Before that I was dealing in individual high networth investors. It was on his advice that I started using various accounts of my relatives for my business for corporate investments. In May, Gupta made the first corporate investment of R5 crore through me,” Puri added.
The investigators said initially they did not believe the claims of Puri that Gupta was the brain behind the fraud. But when they searched Gupta’s account details, it was found that about R20 crore was transferred to his accounts in the last six months. “This raised the suspicion and Gupta we arrested,” said a police official.
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Puri’s clients say citibank closed their accounts
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Sanjeev K Ahuja, Hindustan Times
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Gurgaon, January 05, 2011
First Published: 01:58 IST(5/1/2011)
Last Updated: 02:01 IST(5/1/2011)
City police officials probing into the R300-crore Citibank scam have claimed that several high networth investors (HNIs) had approached them with complaints that their holding assets such as securities, mutual fund units etc were liquidated without their knowledge by Citibank officials. The
police, sources said, were in touch with all investors which include about 20 corporate entities. These investors have complained to the police about liquidation of their shareholding from their demat accounts without their knowledge. The complainants, most whom favoured anonymity, had claimed that they had suffered huge losses, officials said.
The complainants had alleged that Puri was not only managing their wealth investment accounts but operating these accounts. He would also liquidate holding assets and invest the same in various brokerage firms without their knowledge or permission, the police officials added. The police said in addition to some of the HNIs approaching the police department, they too were trying to contact those who were either not aware of the fraud or not willing to come forward.
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City Bank Fraud . Police Files FIR Aginst Vikram Pandit , CEO and 10 Others [Wikipedia defines 'FIR'...]
The 300 crore City Bank fraud has taken a serious turn . The Gurgaon Police today filed an FIR against Shivraj Puri , the Relationship Manager and 10 other top managers of the City Bank including its CEO , VikramVikram Pandit and Chairman , William R. Rhodes . The FIR has been filed under Sec. 420 and 120-b which pertain to cheating and criminal conspiracy .
This FIR was filed a day after the main accused , Shivraj Puri , was taken on a 7 days police custody by the Gurgaon Police. Yesterday , the police had also arrested Sanjay Gupta , Chief Finnancial
Officer of the Hero group on charges of helping Shivraj Puri in the fraud . Sanjay Gupta was remanded to five days police custody by a Gurgaon court . The Hero group accepted that the investment made by the group was in the knowledge of the management .
The City Bank fraud has raised many questions regarding internet banking and the huge risks involved .
Singh122 is based in New Delhi, Delhi, India, and is Anchor for Allvoices
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To get to the bottom, cops in Gurgaon reach Citi’s top in US
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Indian Police Probe Citi, Pandit
Asian Wall Street Journal | about 3 hours agoIndian police Tuesday registered a case against top Citigroup Inc. officials, including Chief Executive Vikram Pandit, in connection with a estimated three-billion-rupee ($67.2 million) alleged fraud at a Citibank branch in a New Delhi suburb. The... -
Citibank scam: CEO Pandit, top brass named in FIR
Times of India | about 6 hours agoIn the first FIR lodged in the Rs 300-crore fraud, the Gurgaon police on Tuesday filed a case of criminal breach of trust, falsification of accounts, cheating and criminal conspiracy against all top bosses of the bank, including group CEO Vikram... -
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Some victims of Citibank fraud say their securities were encashed
Daily News & Analysis | about 15 hours agoSeveral High Networth Individuals (HNIs), who are also victims of Rs300 crore fraud allegdly masterminded by Shivraj Puri, Citibank's relationship manager, have complained to the police that their securities were encashed without their knowledge. "We... -
Citibank manager's parents summoned by police
NewKerala | about 17 hours agoRaghuraj and Deeksha Puri, parents of Citibank manager Shivraj Puri who is accused of masterminding a Rs.300 crore fraud, were summoned by the police Tuesday to help in the investigations, police said...Deswal Tuesday sent a letter to Raghuraj's... -
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Asian Wall Street Journal | 1 day agoCitibank branch has widened with the arrest of an executive of Hero Group, a conglomerate that includes Hero Honda motorcycles. Police said an employee of a unit of Hero Group, which is based in the Gurgaon suburb of India's capital where the... -
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New Delhi - India
Plot thickens as police arrest Hero group man
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Sanjeev K Ahuja , Hindustan Times
Email Author
Gurgaon, January 04, 2011
First Published: 00:55 IST(4/1/2011)
Last Updated: 01:00 IST(4/1/2011)
On the basis of information provided by prime accused Shivraj Puri, the Gurgaon police on Sunday night arrested Sanjay Gupta, associate vice-president of Hero Corporate Services Limited (HCSL), in connection with the multi-crore Citibank fraud. Gupta was arrested when he visited DLF City (Phase 2) police station to participate in routine investigation. Puri has been maintaining ever since he was detained that Sanjay Gupta was the mastermind behind the multi-crore fraud. The police who roped in experts gathered evidence before arresting him on the charges of conspiracy.
Senior police officials had called Sanjay Gupta as well as representatives of brokerage companies — Religare and Bonanza, two of the five brokerage firms, where Puri had invested the money — on Friday.
During interrogation, Puri revealed that till May last year he had been dealing in individual investment portfolios with Citibank in the capacity of relationship manager.
“I happened to meet Gupta in April. He told me to start dealing in corporate investment business also for bigger profit margins. Before that I was dealing in individual high networth investors. It was on his advice that I started using various accounts of my relatives for my business for corporate investments. In May, Gupta made the first corporate investment of R5 crore through me,” Puri added.
The investigators said initially they did not believe the claims of Puri that Gupta was the brain behind the fraud. But when they searched Gupta’s account details, it was found that about R20 crore was transferred to his accounts in the last six months. “This raised the suspicion and Gupta we arrested,” said a police official.
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04Jan2011
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3 Jan, 2011, 02.37 - PM IST,AGENCIES
Citibank fraud: Sanjay Gupta, AVP of Hero Corporate Services arrested
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GURGAON: Sanjay Gupta, the AVP of Hero Corporate Ltd, was arrested on Monday for his alleged connivance in the Rs 300 crore Citibank fraud, police said.
According to police, Gupta was in the know of the massive fraud perpetrated by Sanjay Puri , Citibank's relationship manager.
Police said that the fraud was "done in his (Gupta's) knowledge" and Puri used to give him commission.
Gupta is being produced in a court here.
It is believed that the prime accused Shiv Raj Puri had parked his funds in an illegal brokerage firm floated by Sanjay Gupta. Hero Corp had clarified earlier that it lost money to the tune of Rs 29 crore in the Citibank fraud case. It is also believed that Sanjay Gupta has been running many small financial firms which have nothing to do with the Hero Group. Gupta is believed to have also cashed in commissions worth Rs 15 crore
Puri had surrendered last Thursday and was handed a seven-day police remand.
According to police, firms belonging to the Delhi-based Hero Group invested Rs 200 crore in Puri's account and Rs.100 crore was invested by individuals. Puri, in turn, invested the money in five major brokerages, including Religare, Okaya and Bonanza.
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The Economic Times - India
Citibank fraud: Gurgaon police arrest banker Shiv Raj Puri
30 Dec, 2010, 01.00PM IST,AGENCIES
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GURGAON: Shivraj Puri, the alleged mastermind behind a major fraud in the Citibank branch here, was today arrested.
Talking to Times of India after his arrest , Puri said: "I have already given full details to the police. I have full faith in the judiciary. Truth will come out." Check out: The great heist of Citibank
Top police officials, however, declined to give details including from where he was arrested. He is likely to be produced before a court tomorrow.
Meanwhile Police Commissioner S S Deswal told reporters that the size of the fraud could be about Rs 300 crore.
He said 40 teams have been constituted to crack the case that involved alleged siphoning off funds taken as investments from high networth individuals into a personal account of the main suspect Puri and three of his accomplices.
Deswal said Puri's father Raghuraj Puri is said to be owning a brokerage firm Norway Martin through which funds were diverted and invested in the stock market.
Sources said the accused owned several properties in the NCR. An investor who Shiv Raj allegedly cheated recalls: “This smart banker met me one- and-a-half-years ago. He came with a lucrative scheme and seemed to know his trade well. I was instantly taken in by his soft talk. He was not pushy like other banking professionals.”
Puri opened 78 accounts in his name and in the names of his grand parents, Premnath Puri and Sheela Premnath Puri and in the name of his mother, Deeksha Puri. They all are co-accused along with Puri.
The accounts are with different financial institutions including banks and brokerage houses spread across Gurgaon, Delhi and Kolkata. Religare, Bonanza and India Infoline figure in the list. The banks include SBI , HDFC , Standard Chartered, PNB, Axis and ABN-Amro. According to the police commissioner SS Deswal, notices have been issued to the banks to seize all the accounts. "We have formed five special teams to investigate the case. And we are hot on Puri's trail."
Religare, Bonanza and India Infoline figure in the list. The banks are SBI, HDFC, Standard Chartered, PNB, Axis and ABN-Amro.
Talking to Times of India after his arrest , Puri said: "I have already given full details to the police. I have full faith in the judiciary. Truth will come out." Check out: The great heist of Citibank
Top police officials, however, declined to give details including from where he was arrested. He is likely to be produced before a court tomorrow.
Meanwhile Police Commissioner S S Deswal told reporters that the size of the fraud could be about Rs 300 crore.
He said 40 teams have been constituted to crack the case that involved alleged siphoning off funds taken as investments from high networth individuals into a personal account of the main suspect Puri and three of his accomplices.
Deswal said Puri's father Raghuraj Puri is said to be owning a brokerage firm Norway Martin through which funds were diverted and invested in the stock market.
Sources said the accused owned several properties in the NCR. An investor who Shiv Raj allegedly cheated recalls: “This smart banker met me one- and-a-half-years ago. He came with a lucrative scheme and seemed to know his trade well. I was instantly taken in by his soft talk. He was not pushy like other banking professionals.”
Puri opened 78 accounts in his name and in the names of his grand parents, Premnath Puri and Sheela Premnath Puri and in the name of his mother, Deeksha Puri. They all are co-accused along with Puri.
The accounts are with different financial institutions including banks and brokerage houses spread across Gurgaon, Delhi and Kolkata. Religare, Bonanza and India Infoline figure in the list. The banks include SBI , HDFC , Standard Chartered, PNB, Axis and ABN-Amro. According to the police commissioner SS Deswal, notices have been issued to the banks to seize all the accounts. "We have formed five special teams to investigate the case. And we are hot on Puri's trail."
Religare, Bonanza and India Infoline figure in the list. The banks are SBI, HDFC, Standard Chartered, PNB, Axis and ABN-Amro.
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Citibank caught in 400cr staff fraud at retail unit in Gurgaon
Embed: ET-video: Citibank staff alleged to have siphoned off Rs 400 cr Views: 3587
Posted: 20 hours ago
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29 Dec, 2010, 07.03AM IST, Shailendra Bhatnagar & Mohit Bhalla,ET Now
Citibank is caught in an estimated 400-crore fraud and forgery by staff at its retail banking unit in Gurgaon, involving funds from wealthy individuals and corporate clients . The fraud was discovered early this month when a customer told a relationship manager that he had invested in a Citibank scheme that promised high returns in a short period, when no such scheme existed, said three people familiar with the matter.
Nearly 40 clients, including some corporate treasuries, could be affected because of the fraud, but their identities are not known. It is unclear whether Citibank will compensate its clients for the losses. The story was broken by ET NOW, this paper’s television channel.
“We recently initiated an investigation into a certain set of suspicious transactions based on documents forged by an employee involving a few accounts in our Gurgaon branch,” Citi said in an email reply to ET NOW. “We immediately reported the matter to all the relevant and law enforcement authorities.” It declined comment on the quantum of fraud.
Citigroup’s is the latest in a season of bribery, corruption, stock manipulation and fraud cases dominating the financial sector usually associated with most bull markets. Although a series of such cases, including arrests of eight finance sector executives last month in a bribes-for-loans scandal, have taken the sheen off investor enthusiasm, they are far away from the market scandals of 2001 and 1992 that crushed investor confidence.
One or more employees at Citibank’s Gurgaon office are alleged to have forged the letterhead of the bank to peddle a schemeclaimed to have been approved by Citibank’s investment product committee regulator—to clients that could yield high returns in a short span, said one of the persons familiar with the modus operandi. The funds generated by selling the product to some investment companies and individuals were transferred to accounts of some brokers, who utilised the money for their transactions . The people at Citibank involved in the process were supposedly paid bribes by those brokers , they said.
“Suspicious transactions have been isolated and we are providing full assistance to the authorities in their investigations ,” said Citibank. “This issue does not impact other accounts, transactions or customers of the bank.
Subsequent to our complaint naming the involved employee and other external individuals who appear to be perpetrators in these suspicious transactions, the Gurgaon Police has registered an FIR.” The staff named in the police report is a relationship manager at the Gurgaon branch, said an insider who did not want to be identified.
HIGH-NETWORTH FRAUD
HOW FRAUD WAS COMMITTED?
Citibank’s relationship managers are said to have committed the fraud with the help of an external party, most likely a brokerage house that distributes investment products Funds generated by selling the product to some investment companies and individuals were transferred to accounts of some brokers, who utilised the money for their transactions
The employees claimed the products were authorised by Citibank’s investment product committee and used forged bank documents and letterheads to prove the same
WHO ARE INVOLVED?
Employee named in FIR learnt to be working as a senior relationship manager in Citibank’s Gurgaon branch. The staffer may have been supported by other relationship managers responsible for sales of investment products to high net worth clients of the bank
WHO ARE AFFECTED?
Close to 40 clients, including some corporate treasuries, could be affected because of the fraud. It is unclear whether Citibank will compensate its clients for the losses.
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Citibank caught in Rs 400 crore fraud orcshestrated by manager
Wed, Dec 29, 2010 10:04:48 IST
http://www.merinews.com/cj/NikhilMenon
A police official, who was also involved in the look out told media persons that the details, along with the photograph of Puri, have been sent to all airports across the country with help of the Bureau of Civil Aviation Security.
A RELATIONSHIP manager from Citibank's Gurgaon branch was accused of engineering a fraud worth Rs 400 crore. The accused Shiv Raj Puri from the DLF-II branch has now aroused fear amongst officials about his possible escape from the country for which the police have already issued Look Out Circular (LOC) notice against him and has also alerted the ministry of home affairs and ministry of civil aviation.
A police official, who was also involved in the look out notice told media persons that the details, along with the photograph of Puri, have been sent to all airports across the country with help of the Bureau of Civil Aviation Security. In case he tries to flee the country, he will be apprehended at the airports.
As per the police reports, Puri had been employed with Citibank for over 10 years and was a permanent employee, who used to deal with account holders. In order to swindle money from the bank, Puri had opened three accounts by the names of his relatives and made other customers deposit money into those accounts by using fake Security and Exchange Board of India (SEBI) documents which promised higher rate of returns. The police, however, is also looking into the role played by his relatives and other employees of the bank.
The investigating officer further added that the details are lying with the bank and police has initiated the process to look for them. Also, the statement of those, who have invested the money is important and a team has been set up to get information.
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