By IANS,
Thiruvananthapuram : Two bank employees were suspended for having links with a 20-year-old youth who has been arrested for swindling people to the tune of Rs.2 bn by promising huge returns in a short time, an official said Wednesday.
An official of the Thrissur-based Dhanalekshmi Bank told IANS that action has been taken against the two employees.
“This has been done after we conducted an inquiry. I am unable to say anything more,” said the official requesting anonymity.
The youth, Sabarinath, ran a share-broking cum financial institution here. He was arrested Sep 1 after being on the run for five days. He is alleged to have cheated clients to the tune of Rs.2 billion.
The state industries department last Thursday suspended S. Chandramathi, an official working with the Small Industries Development Corporation. Sabarinath had told the media after his arrest that she had cheated him.
TV media reports aired Wednesday say that the Military Intelligence, after a preliminary probe, suspects that he was just the front for the scam and he is understood to have received money for laundering.
The federal agency which had suspicion about his dealings had informed the state police about it.
The Crime Branch of the state police, who are now conducting the investigations, have unearthed records that show several investors had used Sabarinath to park their ill-gotten wealth.
The police have questioned a doctor in Kollam who had invested close to Rs.10 million with him. On Tuesday, the police seized a high value car from the doctor.
A brand new BMW car, which Sabarinath had gifted to his girl friend, has also been seized by the police.
Reports indicate that among those who have invested with Sabarinath were politicians, bureaucrats and even police officials.
The investigating team is going to summon a leading film actress with whom he had close relations. She was present at an investor meeting organised by his company last month at a plush hotel here.
Sabarinath, who studied up to Class 12, fell out with his parents when they refused to give him money to start his business. He began as a financial consultant with a life insurance company and 18 months ago launched his firm Total4U.
He used to offer Rs.160,000 on an investment of Rs.100,000 for three months. With high returns and prompt payments, he won the confidence of many and his client base increased. But since last month, people stopped getting any money. Towards the end of August, he absconded.
Sabarinath had a lavish lifestyle and owned many luxury cars. He even opened a recording studio in a prominent hotel at Kochi a month ago.