Earlier, SEBI also received almost 280 complaints against High Brow and carried out an examination of details available on its website
A multi-crore rupees scam with hundreds of investors shown big dreams of the stock market has sent the CBI on a money trail along with the questioning of directors and employees of an investment, High Brow Market Research Investment Adviser Pvt, which allegedly misled investors with promises of very high returns but misappropriated their money and never invested the money in stock markets.
The CBI’s Mumbai unit has started questioning the firm’s officials including Girish Kumar Pahvani, Chandan Singh Rajput, Mohit Shyamratan Chafarwal, Laxmikant Lalmani Sharma, Hemant Aggarwal, Swapnil Vijaykumar Prajapati, Sanjana, Anamika, Purvi, Mohita, Rajat Singania, Varun Singh & others.
Keeping in view the plight of hundreds of small investors who have lost crores of rupees, the Bombay High Court had passed an order recently handing over an FIR each registered at D.N. Nagar police station, Mumbai, and Kudal Police Station in Maharashtra’s District Sindhudurg.
As mentioned in FIR No. 231/2018, the directors and employees of High Brow Market Research Investment Adviser Pvt. Ltd., Indore, Madhya Pradesh in conspiracy with each other, during the period from November 27, 2017 to July 25, 2018, frequently contacted the complainant Ajay Narayan Chavhan, a teacher by profession, over phone and made him to invest Rs 25,50,000/- on the pretext of giving him handsome profit. Chavhan invested the said amount from his account no. 00150101460067 maintained with ICICI Bank, Sawantwadi Branch. The Directors and employees of High Brow Market Research Investment Adviser Pvt. Ltd., Indore, Madhya Pradesh, did not invest the said amount and misappropriated the same and thereby cheated the complainant to the tune of Rs 25,50,000, said a CBI official.
While registering an FIR, the CBI noted that the above facts disclose commission of offences of cheating, criminal breach of trust with common intention by Girish Kumar Pahvani and other officials of the company. A regular case has now been registered u/s 420, 406 and 34 of IPC and entrusted to Dharambir Rana, Inspector of Police, CBI, BSB, Mumbai for investigation, a CBI official said.
Earlier, the SEBI also received almost 280 complaints against Highbrow and carried out an examination inter alia an analysis of the details available on the website of Highbrow, payment receipts issued by Highbrow, risk profiling of clients conducted by Highbrow, written correspondence between Highbrow and its clients, other documents available on record, complaints filed by the complainants, the call records between Highbrow’s representatives and its clients (who have complained) provided by the complainants, etc.
The probe noted from payment receipts issued to the clients by Highbrow and MOU/agreement it entered into with the clients that Highbrow has been promising targeted returns (terming them as “approachable profit”) under various pre-defined packages on the investments made by the clients.
It observed that Highbrow on its website link https://www.ways2capital.com/profit-count.php runs a profit counter which essentially shows the amount of profit which an investor can earn on his investment value across different market segments such as stock, derivative, forex and commodity. The said link also provides contact details for “quick trial” and the toll free number to contact Highbrow. Thus, the said profit counter is apparently used by Highbrow to market its performance to investors and to lure them into using its services.
The profit counter provides for investment returns across different time horizons i.e. one day, one week, one month, six months and one year. It is surprising to note that the profit calculation projected on this link remains unchanged regardless of the market segment in which the investment is made. The only disclaimer provided on the link is that “Profit calculations are based on hypothetical data”. The returns revealed on this link appear to be assured and are not supported by any analysis or rationale.
The SEBI probe also directed Highbrow not to dispose of or alienate any assets, whether movable or immovable, or any interest or investment or charge on any of such assets. Order in the matter of Highbrow Market Research Private Limited held in their name, including money lying in bank accounts except with the prior permission of SEBI.