Fake IPO Scam Exposed in Mumbai: Two Arrested in Pune

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Mumbai’s Kandivali Police have detained two individuals from Pune in connection with a cyber fraud case involving an unauthorized investment and initial public offering (IPO) allocation scheme.

Arrest Details

The suspects, Pratik Kshirsagar (38) and Dinesh Sankla (25), were arrested for defrauding a local businessman of ₹8.22 lakh through a deceptive online platform. The police operation in Pune led to the seizure of electronic devices and documents from Kshirsagar’s office.

Suspects and Charges

Kshirsagar and Sankla are accused of creating a fraudulent trading system with fabricated digital wallets and share holdings. They targeted victims by offering high-return investment opportunities and later demanded additional funds for an alleged IPO allotment.

Fraudulent Scheme

The suspects created a deceptive online platform that displayed fake trading balances and share holdings to simulate legitimacy. When victims transferred funds, the amounts appeared in the digital wallet, reinforcing the illusion of genuine transactions.

How the Scam Worked

Victims were informed of an alleged IPO share allotment of 30,000 units, requiring an additional ₹9 lakh to secure the allocation. The victim transferred ₹8.22 lakh to accounts provided by the suspects before communication ceased.

Investigation Findings

During the probe, authorities identified 22 mule bank accounts linked to 183 cyber fraud incidents. The stolen funds were routed through Bank of Baroda, Uttar Pradesh Gramin Bank, and Yes Bank. Approximately ₹3 lakh was recovered, linked to a Pune-based company connected to Kshirsagar.

Money Laundering Activities

Sankla alleged that the proceeds were transferred to accounts linked to a China-based entity, with the suspects receiving commissions in US dollars. Law enforcement is examining the foreign connection and tracing the final destination of the funds.

Recovery and Ongoing Efforts

Police are focusing on identifying additional network members, analyzing mule account operations, and determining the involvement of other suspects. The investigation continues to trace money laundering activities and recover the stolen amount.

Future Steps

Authorities are working to apprehend more individuals linked to the scam and recover the remaining funds. The case highlights the growing threat of cyber fraud in investment schemes and the need for heightened vigilance.