In yet another case that exposes the rot in Bengal’s financial underbelly, the Enforcement Directorate (ED) has arrested two individuals involved in a massive bogus investment scheme that duped scores of innocent investors—many of them from rural areas—through a sham financial entity operating under the name LFS Broking Private Limited. This isn’t just a case of white-collar fraud—it’s a cold-blooded assault on the trust of hardworking Indians, many of whom poured their life savings into what they thought were legitimate investment plans.
The façade? A share brokerage firm. The reality? An organised scam factory masquerading as a financial institution. The two arrested individuals have been identified as Dilip Maiti and Md Anarul Islam. Maiti was nabbed from his residence-cum-office in Arambagh, Hooghly district, while Islam was picked up from Bolpur in Birbhum. The arrests came after a day-long raid across five locations, linked to this fraudulent company.
Sources within the ED say incriminating documents were seized from all premises, particularly from the residences and offices of the accused.Initial investigations suggest Maiti served as a director, while Islam held a senior operational role within the sham enterprise. Let’s not mince words: This was a premeditated, targeted attack on the poor and the financially uneducated, especially in rural Bengal. These criminals used the label of a “share brokerage” to peddle bogus schemes, luring villagers with dreams of returns, and leaving them with bankruptcy and heartbreak. Some of the stories that have come to light are downright gut-wrenching.
In one tragic case, an investor committed suicide inside the office of the entity, after losing all his savings. Another death followed soon after. These are not just financial crimes—they are institutional murders committed under the garb of business.The involvement of SEBI also adds a grim backdrop to this story. Last year, in June 2024, SEBI cancelled the registration of LFS Broking Private Limited and barred its Managing Director, Ziaur Rahaman, from associating with any SEBI-registered intermediary for five years. Rahaman, currently behind bars, was the first domino to fall—but clearly, the network ran deeper, Enforcement Directorate sources said.
Despite posing as a share brokerage outfit, LFS Broking was allegedly involved in unauthorised financial activities, including portfolio management and depository services—all without any legal clearance or oversight. This case is a stark reminder of how financial terrorism doesn’t always come from across borders—it’s alive and thriving within. Bengal, once a bastion of intellectual and financial reform, is now witnessing an alarming rise in such rackets. The culprits don’t just bleed individual investors—they destabilise trust in financial institutions and erode the economic security of entire families. The ED has acted swiftly and decisively. But the larger question remains: Why are such fraudsters allowed to operate freely until lives are lost? Where is the state’s vigilance? Is it asleep, indifferent, or worse—complicit?
For now, both Maiti and Islam remain in Enforcement Directorate custody as the probe continues. But this much is clear: this isn’t just about one bogus firm—it’s about an entire ecosystem of fraud that preys on the vulnerable while wearing suits of legitimacy.
