A Citibank employee in India is accused of probe into Citibank fraud

Posted by puguh on Wednesday, December 29, 2010

A Citibank employee in India is accused of probe into Citibank fraud

New Delhi: Police said on Wednesday they were investigating Citibank staff in Gurgaon over a multi-million-dollar scam targeting wealthy clients.

Employees at the bank in Gurgaon, where many international companies are based, allegedly forged letters to sell a fake investment scheme to about 40 wealthy clients, the Economic Times newspaper reported.

Nearly 4 billion rupees (88 million dollars) was handed over, according to the paper.

The alleged fraud came to light earlier this month when one of the clients mentioned the scheme to a senior bank manager. Citibank and police confirmed the probe but gave no further details.

The investigation is the latest financial scandal to hit India.

Last month several senior executives of state-run banks and an insurer in Mumbai were arrested over bribes totalling more than 200 million dollars paid to sanction loans to property developers.

This year no matter how well the economy might have performed, or no matter how much return Gold or Silver gave to the investors, it will be for sure remembered for the scams that have been unearthed, mostly of corruption charges.

The CWG scam involving Suresh Kalmadi and the telecom scam including the former telecom minister A. Raja will be on the top of the mind, but at the setting of the year another scam from one of the reputed banks, Citibank has been unearthed.

One of the executives from the reputed bank has been accused of cleaning up Rs. 100 crore of the account holders' money by proposing a scheme which was never there.

The Gurgaon branch has reported that the executive had shown a fake circular from SEBI for and lured customers to invest money, in accounts he created with names of the relatives. Rumor is that the executive might have gobbled up to 400 crore but it is not yet confirmed by Citibank.

Shivraj Puri is the name of the accused in this fraud case. Roughly 30 customers are there who invested money in this scheme into 3 fraud linked accounts.

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