Who is the Mastermind Behind the LFS Broking Scam?
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Synopsis
Kolkata's financial landscape has been shaken as the Enforcement Directorate arrests Saiyad Jiyajur Rahaman, the alleged mastermind behind the LFS Broking scam. This article delves into the details of the case, the amount involved, and the implications for investors.
Key Takeaways
- Saiyad Jiyajur Rahaman arrested for masterminding the LFS Broking scam.
- Investors were lured with promises of high returns.
- Total mobilized funds estimated at Rs. 1,500 crore.
- ED has conducted searches and frozen bank accounts.
- Ongoing investigations into fraudulent activities.
Kolkata, July 8 (NationPress) - The Enforcement Directorate (ED) announced on Tuesday the apprehension of Saiyad Jiyajur Rahaman, the Director of M/s LFS Broking Pvt Ltd, under the Prevention of Money Laundering Act (PMLA), 2002.
“Previously, the suspect was presented before the Hon’ble Chief Judge of the City Sessions Court in Kolkata following a production warrant issued by the Hon’ble Court. The accused has been placed in ED custody until 14.07.2025,” stated the ED on Tuesday.
As per the ED, Rahaman was the key figure behind deceptive schemes perpetrated through LFS Broking, which guaranteed returns between 2–3 percent on investments, enticing numerous investors to trust their hard-earned funds with the accused.
“In this investigation, searches were conducted on 22.05.2025 at several locations associated with M/s LFS Broking Pvt. Ltd. and its directors/associates, leading to the freezing of multiple bank accounts, identification of various movable and immovable properties, and the arrest of two more accused persons, namely Md. Anarul Islam and Dilip Kumar Maity under Section 19 of the PMLA, 2002,” the ED's statement read.
The case pertains to the fraudulent mobilization of public investments by the accused through various entities, based on deceptive promises of substantial returns at exorbitant rates.
“The arrested individuals were operating the illicit business under the pretense of M/s LFS Broking Pvt. Ltd., a company recognized by SEBI for share broking and other investment services. However, they intentionally established several other firms with names similar to M/s LFS Broking Pvt. Ltd.. Investors were misled into thinking they were investing in the SEBI-registered firm, while the funds were actually redirected to similarly named companies like LFS Broking and PMS Services, among others,” the ED's statement highlighted.
ED also stated that the total amount raised by the accused has been identified to be approximately Rs. 1,500 crore and that further investigations are ongoing.
Point of View
The arrest of Saiyad Jiyajur Rahaman underscores the urgent need for stricter regulatory oversight in the financial sector. The scale of the alleged fraud, amounting to around Rs. 1,500 crore, raises significant questions about investor protection and the integrity of investment firms in India. It's imperative that authorities take decisive action to restore public confidence in financial institutions.
NationPress
20/07/2025
Frequently Asked Questions
What is the LFS Broking scam?
The LFS Broking scam involves fraudulent investment schemes promising high returns, leading to significant financial losses for investors.
Who was arrested in connection with the scam?
Saiyad Jiyajur Rahaman, the director of LFS Broking Pvt Ltd, along with two others, was arrested by the Enforcement Directorate.
How much money is involved in the scam?
The total amount mobilized by the accused is estimated to be around Rs. 1,500 crore.
What legal actions have been taken?
The Enforcement Directorate has filed charges under the Prevention of Money Laundering Act and has arrested key individuals involved.
What should investors do in light of this news?
Investors should exercise caution and conduct thorough research before investing in financial schemes, especially those promising unusually high returns.
