Economic Fraud
Ex-Axis Mutual Fund Manager Booked in Multi-Crore Front-Running Scam
MUMBAI: The Economic Offences Wing (EOW) of the Mumbai Police is now investigating a multi-crore front-running fraud case involving Viresh Joshi, a former chief dealer at Axis Mutual Fund, along with several others.
The accused allegedly leaked insider information about Axis MF’s investment strategies to stockbrokers, enabling them to profit illegally.
The fraudulent activities, which reportedly took place between September 2021 and March 2022, involved large-scale financial misconduct, including cheating, forgery, and criminal conspiracy.
The case was initiated by the Sion police following a magistrate court order based on a complaint filed by an investor, Soni Parmar.
FCRF Digital Privacy Leadership Awards: Nominate Now!
Massive Financial Misdeeds Uncovered
Joshi, along with co-accused Sumit Desai, Pranav Vora, Dubai-based Brijesh Kurani, and Vaibhav Pandya, is accused of front-running—an unethical practice in which confidential investment plans are shared to manipulate stock prices for personal gain.
Police allege that Joshi used multiple phones and WhatsApp calls to pass sensitive information to brokers, who then influenced their clients to trade accordingly, causing financial harm to over 66 lakh investors and an estimated loss of Rs 2.5 trillion.
Investigators also revealed that Joshi amassed immense wealth, including fixed deposits worth Rs 54 crore, real estate in Mumbai valued at Rs 150 crore, and properties in London.
Nationwide Raids and Seizures
The case has drawn attention from multiple agencies, including the Income Tax Department and the Enforcement Directorate (ED). In August 2022, IT officials conducted raids across Mumbai, Ahmedabad, Vadodara, Bhuj, and Kolkata, seizing unaccounted deposits of over Rs 55 crore and freezing more than 20 lockers linked to Joshi and his associates. The ED has also launched a probe under the Foreign Exchange Management Act (FEMA) to investigate potential forex violations.
Registrations Open for FutureCrime Summit 2025: India’s Largest Conference on Technology-Driven Crime
Forged Documents and Manipulated Stock Prices
According to the FIR, the accused allegedly forged documents and manipulated stock prices to deceive mutual fund investors. The illicit gains were reportedly funneled into various accounts and investments, violating market norms and eroding investor trust.
The case underscores the pressing need for stricter regulatory oversight in India’s financial markets to safeguard investors from such fraudulent practices. As the investigation unfolds, the spotlight remains on the systemic vulnerabilities exploited in this high-profile scam.
