Fake stock trading scheme exposed as Hyderabad man arrested for defrauding investors

Hyderabad: The Detective Department’s Special Zonal Crime Team arrested a private employee for operating a fake stock trading scheme that cheated several investors across the city. Officials said the suspect, N. Karthik, 43, from Vidya Nagar, collected large sums by offering unrealistic returns.

Fake stock trading scheme led to Rs 4.36 crore loss for multiple victims

According to the police, Karthik ran an unregistered firm named Explore Technologies. He lured investors with claims of assured monthly returns of six per cent and profits of up to 20 per cent. He also introduced himself as a Data Science Manager at Ernst & Young to gain credibility. Because of these claims, a retired associate professor alone invested Rs 1.35 crore.

Karthik later stopped payments and went absconding. Investigators found that he used similar tactics to cheat several people. The total loss reported so far stands at Rs 4.36 crore. Consequently, the SZCT arrested him and initiated further action.

Police said a case was booked and that investigation is in progress.