A major stock market fraud case has surfaced in Assam, centering around a 29-year-old named Deepankar Barman. Since Barman’s disappearance in August, Assam Police have arrested 59 individuals across 28 cases. The case highlights the lure of high returns and the power of social media in perpetuating investment scams.

The Fraudster Behind DB Stock Broking In August 2024, Deepankar Barman, director of DB Stock Broking, vanished after promising substantial returns on investments. His Guwahati office was shut, leaving numerous investors without their money. Promising returns as high as 7% monthly, 24% quarterly, and up to 100% yearly, Barman initially delivered on his promises, luring more investors. However, by late July, payments stopped, leading to panic.

The Web of Scams Unfolds Barman’s disappearance uncovered a larger network of stock market fraud in Assam. Police arrested several young men who posed as successful stock traders, displaying lavish lifestyles on social media to attract victims. Among them was 22-year-old Bishal Phukan, who claimed to have amassed wealth through trading. Phukan is accused of running a multi-crore scam involving Rs 60 crore from investors across multiple states.

Crackdown on Financial Fraudsters Assam Police, under the guidance of Director General G P Singh, have launched a massive crackdown on illegal trading activities. Fourteen Special Investigation Teams (SITs) were formed, leading to the arrest of numerous individuals running unregulated operations. Authorities continue to investigate, with Chief Minister Himanta Biswa Sarma stating that the Enforcement Directorate (ED) and Income Tax Department are involved.

The Role of Social Media These scammers, some as young as 22, built their reputations through social media by flaunting luxury cars, vacations, and high-end lifestyles. This image of success attracted numerous investors, who believed in their false promises of substantial returns. In most cases, the initial returns were paid out to win investor confidence, but as withdrawals exceeded deposits, the schemes collapsed.

How the Scams Operated According to investigators, these fraudsters operated by rotating investor funds or using multi-level marketing techniques. Some claimed to be experts in stock trading and used the profits from early investors to pay out others. As more people invested, the scams grew larger, but eventually, the promised returns stopped.

Conclusion Assam’s stock market fraud case is a cautionary tale for investors. With dozens arrested and investigations ongoing, it’s clear that these scams, often fueled by social media hype and false promises, have far-reaching consequences. Investors are urged to be cautious and verify any investment opportunities before committing their money.