Crime branch takes over probe into Masters Finserv scam

KOCHI: The economic offence wing (EOW) of the crime branch has taken over the probe into a multi-crore stock trading scam in which a Kakkanad-based investment firm, Masters Finserv, cheated investors by promising to invest money in the stock market. It was following the direction of the state police chief that the Ernakulam EOW re-registered FIRs in five cases registered at the Thrikkakara police station.

Last week, Thrikkakara police had arrested Ebin Varghese, 40, of Vazhakkala and proprietor of Masters Finserv, and his wife Sreerenjini in connection with the fraud. Crime Branch DySP Roy V is investigating the cases transferred by the police to the agency. “The cases were handed over to the crime branch as the amount cheated by the accused is over Rs 1 crore. Apart from that, a detailed probe is required to find out where Ebin Varghese parked the money he collected from investors. Nine cases were registered at Thrikkakara police station alone. Several cases have been registered in other police stations in Kochi as well as in other police districts,” a crime branch officer said.

Currently, the crime branch is probing five cases against Ebin Varghese. These include cases filed by a Vazhakkala native who lost Rs 61.5 lakh, a Kizhakkambalam native who lost `97.8 lakh, a Ponekkara native who lost Rs 1.6 crore, a Ravipuram native who invested Rs 17.75 lakh and a Kumbalam native who invested Rs 4.7 crore. Crime branch is likely to take over all the cases registered against Masters Finserv across Kerala soon.

“Two complainants in the case are doctors while others are businessmen. The accused  mostly targeted doctors, engineers and entrepreneurs promising them high returns for the investment. Initially, the company paid dividends obtained from the invested money. However, the returns stopped since November last year,” a police officer said.

Meanwhile, Kalamassery police on Tuesday registered a fresh case against Ebin Varghese and Sreerenjini for cheating an Edappally native couple after taking Rs 1.56 crore from them. The couple invested money with Masters Finserv since October 2015. Similarly, Cheranalloor police registered a case against Ebin following a complaint lodged by a Ponekkara native who invested Rs 24.41 lakh with Masters Finserv since 2016.