Surat: The Economic Offences Wing of Surat Police has arrested Jiyajur Raheman Syed, CEO and Director of LFS Broking Company, from Cuttack Jail on a transfer warrant. The accused allegedly defrauded 55 people from Surat of ₹2.48 crore by running a Ponzi scheme under the guise of providing portfolio management services through West Bengal-based LFS Broking Pvt. Ltd.

The Surat Police have obtained a five-day remand of the accused and are continuing their investigation.

According to the details of the case, Devang Shah, a resident of Gopipura who runs an incense stick business near Chauta Bazaar in Surat, was introduced to the scheme in 2020 by Nirmal Santara, who operates a TV repair business nearby. Nirmal informed Devang that he had been investing in the PFS scheme of LFS Broking Pvt. Ltd. through his cousin, Hemant Kumar, who resides in Bengal.

Hemant Kumar was introduced as a senior manager of the company, which was allegedly headquartered in the UBI Building in Hooghly. It was later revealed that Jiyajur Raheman Syed was the CEO, and Kazi Mehmood was the Director. The company claimed to invest 80% of the funds in blue-chip companies listed on the National Stock Exchange. From 2021 to 2023, the company consistently provided 2% returns on investments to the complainants but later ceased operations. Like Devang and Nirmal, 53 others also lost their investments.

With the total fraud amounting to ₹2.48 crore, the case was brought to the Economic Offences Prevention Wing of the Crime Branch, leading to the arrest. DeshGujarat