LeapRate has learned that Jagjit Singh (pictured at left), a co-owner and Director of FCA-regulated retail forex broker TradeNext, has been arrested in India on swindling charges surrounding another of his retail financial businesses called Crown Credit Cooperative Society.
An article in The Times of India reported that Mr. Singh alongside seven other people were arrested and that police had sealed a Chit Fund office of Crown Credit following complaints by two people in the village of Barnala that they were duped by the firm and could not get their money out.
As news of the arrest spread, people who had money invested in the company from other villages including Moga, Rampura, Sunam, Tapa and Sirsa made calls to the police asking about the fate of the firm, and the funds they had invested with Crown Credit.
The arrested persons are Jagjit Singh (listed as the Managing Director, the company’s website has him down as Predisent of Crown Credit), Jaswinder Singh (also a TradeNext Director), Eish Kumar, Gulshan Kumar, Rajesh Kumar, Shiv Kumar, Kewal Krishan and Manjit Singh.
Mr. Singh and the other seven were reported to be remanded in police custody for three days.
A ‘Chit Fund’ is a kind of savings scheme practiced in India, whereby investors/savers subscribe to send the Chit Fund periodic deposits of money or other valuables to encourage long term savings. A Chit Fund company is a company that manages, conducts, or supervises a chit scheme.
The Times article noted that last week a Barnala resident had committed suicide after he realized that around Rs 1 crore (about USD $160,000) he invested in the company from the proceeds received after selling his shop may not be returned.
Several Chit Fund operators have been luring investors with promises of high interest rates.
An Indian police office involved with the situation was quoted as follows:
After the arrest of eight persons, I received more than a dozen calls from far off places on Wednesday. Many are complaining of being duped by the company. I have advised them to approach police at their respective places. During initial investigation, the arrested persons have confessed that they used to dupe people saying that they were working with a London-based company and money will grow rapidly and people used to believe them.
As we noted above, Jagjit Singh (who also goes by Jagjeet Singh) is a co-owner of FCA-regulated retail forex broker TradeNext. FCA filings show that Mr. Singh owns 40% of TradeNext, with the 60% balance owned by TradeNext CEO Moshin Jameel. We had earlier reported that TradeNext recently decided to terminate its business with retail traders, has suspended trading and is in process of returning all client funds.