Three arrested for investment fraud of Rs 1.2 crore in Choolaimedu; search on for woman

CHENNAI: City Police's Central Crime Branch (CCB) have arrested three persons and have launched a search for a woman in connection with an investment fraud, in which the accused have cheated public to the tune of over Rs 1.2 crore.

The arrested persons were identified as Dharmaraja, Samnath and Vijayakumar, who were part of a company in Choolaimedu.

Dharmaraja's wife, Nithya who is said to have lured several investors by posing as a stock market expert is un the UAE and police have issued a look-out circular against her.

City Police received a complaint from a businessman who claimed that he invested over Rs 1 crore in the company floated by Nithya after seeing advertisements through social media.

Nithya posted regular updates on key stocks and after she received many queries about investing in stocks, she lured some of the customers to invest in the fraudulent scheme in which the public were told that they would get Rs 2000 for every Rs 1000 they invest and asked the clients to invest at least Rs 1 lakh.

Police sources said that a ministerial staff in the City police commissioner's office had invested Rs 9 lakh in the firm believing the accused's words.

After 20 days, the ministerial staff did not receive the money as promised and when she went to the office in Choolaimedu, the office remained closed after which a police complaint was filed.

All the three arrested were produced before a magistrate and remanded to judicial custody.