The Economic Crimes Wing of the Central Crime Branch Police uncovered another mobile loan app scam on Thursday where senior managers allegedly used their employees’ details to start another business. The defendants started a company by appointing some of their employees as directors and opened bank accounts in their names to launder money, a police officer said. This was done without their knowledge.
Two directors of the company and the director have been booked so far.
The scam began to unravel when a marketing manager employed by the defendant received a tip from a bank regarding an account opened in his name. Upon closer inspection, she found records of financial transactions worth thousands of dollars made from that account. She approached the CCB who conducted a detailed investigation.
Police say the defendants – Shabbir Alam and Umakanth Yadav – are directors of a private company offering online loans through apps. “When the marketing manager joined the company in July 2021, they used her documents and other information to open accounts in two private banks without her knowledge. They also started another company and registered her as a director said a senior police officer.
The accused offered app users instant loans at exorbitant interest rates and threatened, intimidated and harassed those who failed to pay. “The bank accounts opened in the employee’s name were used to receive EMI loans and interest, which amounted to hundreds of thousands of rupees,” the officer said.
Police have filed a complaint against the two directors and another member of senior management charging them under various sections of the Karnataka Money Lenders Act, Information Technology Act and the law on the prohibition of charging exorbitant interest in Karnataka.