The Central Crime Branch’s Economic Crimes Unit on Thursday uncovered another mobile credit app scam in which senior directors allegedly used details of their employees to help get another company public. The defendant took a company public that appointed some of its employees directors and opened bank accounts on their behalf to launder money, a police officer said. This happened without their knowledge.
So far, two directors of the company and the manager have been booked.
The scam began to unravel when a marketing manager employed by the accused received a tip from a bank about an account being opened in her name. Upon closer inspection, she found records of several lakhs worth of financial transactions made from this account. She contacted the CCB, which conducted a detailed investigation.
According to police, the defendants – Shabbir Alam and Umakanth Yadav – are directors of a private company that offers online loans through apps. “When the marketing director joined the company in July 2021, they used her documents and other details to open accounts with two private banks without her knowledge. They also listed another company and registered her as a director,” a senior police official said.
The defendants offered app users instant loans at exorbitant interest rates and threatened, intimidated and harassed those who didn’t pay. “The bank accounts opened in the employee’s name were used to obtain loans EMI and interest amounting to hundreds of rupees,” the police officer said.
Police have registered a case against the two directors and one other senior executive, charging them under various sections of the Karnataka Money Lenders Act, the IT Act and the Karnataka Prohibition of Charging Exorbitant Interest Act.