Bengaluru Police Arrest Six in Fake IPO Scam, Recovering Lakhs from Gullible Investors

Bengaluru police have arrested six individuals allegedly involved in a scam that defrauded investors of lakhs of rupees through fake Initial Public Offerings (IPOs). The gang reportedly targeted victims via WhatsApp, sending them links to a dubious investment app. Interested investors were instructed to transfer funds to various bank accounts for their “investments,” after which the perpetrators vanished with the money.

Details of the Arrest

The arrested individuals include Syed Sultan (29), Sheikh Dastagir (26), Karthik A (19), Amit Karekar (25), Guru Bhai (26), and Bharath Bhai (32). Police have identified at least ten suspects in total and have issued a lookout notice for the kingpin, who is believed to be operating from Dubai.

The investigation began when a 37-year-old resident of HSR Layout filed a complaint after losing ₹35.3 lakh. Police traced the financial transactions to identify where the money was withdrawn, revealing that in many cases, it was taken out from ATMs near Charminar in Hyderabad. A police team dispatched to the location arrested two individuals while they were withdrawing cash.

Money Laundering Tactics

Investigations revealed that the suspects often withdrew money from ATMs near Hubballi as well. The stolen funds were allegedly converted into cryptocurrency and funneled to the kingpin based in Dubai. Additionally, the police discovered that a significant portion of the proceeds was laundered through the Hawala route, with transfers being made to individuals in Ahmedabad.

In light of these findings, a senior police officer overseeing the case has contacted the Enforcement Directorate (ED) for further action against the involved Hawala operations.

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