A shocking financial fraud has come to light in Mumbai, wherein a senior citizen lost his lifetime savings to a brokerage firm he trusted. 72 year-old businessman Bharat Harakchand Shah, who runs an affordable guesthouse for cancer patients, fell prey to unauthorized trades which eventually wiped off approximately Rs 35 crore from his portfolio. What seemed like professional advice slowly blew out to be an engineered operation based on blind trust and manipulation.
How a Trusted Portfolio Turned Into a Target
Shah had been given a stock portfolio many decades ago and, with limited knowledge of trading, decided in 2020 to turn over his investments to Globe Capital Market Limited. The recommendation of a friend and assurances from the firm convinced him and his wife to open accounts with the brokerage.
They told him that the brokerage’s employees would use his existing shares as collateral and assured him no extra investment was needed. Over time, two representatives began visiting his home, offering frequent guidance and gradually taking full charge of his accounts.
When Control Shifted & Losses Deepened
The real trouble began when the employees of the firm started placing trades in his name, using Shah only to approve OTPs and routine messages. Shah persisted in trusting them, completely unaware that under his name an aggressive volume of trades was being conducted.
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Annual statements would reflect steady profits while in reality, behind the scenes, his shares were sold, rotated and leveraged in ways he had never authorized.
What is the Moment the Truth Broke Through
The fraud finally came to light in July 2024, when Globe Capital’s risk team informed Shah that his account had slipped into a staggering debt of Rs 35 crore. They threatened to liquidate his remaining shares if he failed to clear the amount.
Stunned, Shah confronted the firm and found out that circular trades and unauthorised transactions had been continuing for four years. If that was not alarming enough, the firm had responded to NSE notices in his name without informing him.
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Legal Action & a Larger Warning
Forced to salvage whatever little was left, Shah sold his remaining holdings and shifted his portfolio elsewhere. He filed an FIR later, accusing the firm of cheating and breach of trust. The investigation is now being handled by the Economic
Offences Wing. His case serves as a strong reminder that investors, especially those who are relatively inexperienced at trading, need to remain vigilant at all times and monitor every transaction while not giving unchecked control to intermediaries.
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Disclaimer: This article is for information purposes only and should not be taken as financial advice or a claim of guilt until the investigation concludes.
