Beware of Rampant Fraud: Take Guard!

Recently, a gentleman reached out to me through WhatsApp and asked me whether Option Master or Marketadora was a part of my Advisory Organization. I could not comprehend his message as it was coming from an unknown contact and asked him to share the context.

He shared with me his WhatsApp interaction with another person who mentioned that he is owning the website https://marketadora.com/. This person pretended to be a SEBI Registered Investment Adviser (RIA), used my name “Shashi Singh” to identify himself, and shared my SEBI Registration ID to prove that he was a genuine RIA. He also mentioned that he had helped other clients make money through options trade.

This was happening for the first time to anyone in our known Advisers’ community. I was surprised by the audacity of the fraudster to blatantly use my identity to dupe innocent investors.

Responding to an urgency

Given the gravity of the situation, I sprang into action.

I visited the website (https://marketadora.com/) of the fraudster and discovered that my SEBI Registration ID was prominently displayed on their site. I browsed through their      Google review page (https://goo.gl/maps/JcRckzR8Gu14NdCi9) and found many fake reviews indicating that there were other individuals complicit in the crime.

I sent an email to the concerned people at BSEASL (Responsible for the Administration and Supervision of IAs) seeking help with this incident. Unfortunately, I did not receive an acknowledgment of my email. Subsequently, I had a conversation with a gentleman at BSEASL. He was sympathetic to my concern but expressed his inability to intervene.

I wrote an email to the appropriate individuals at Market Intermediaries Regulation and Supervision Department (MIRSD) at SEBI, expressing my concerns. Once again, I did not receive any acknowledgment of my communication. Furthermore, I attempted to contact several individuals via phone, but my calls went unanswered.

I lodged a complaint with National Cyber Crime Reporting Portal (Cybercrime.gov.in). My complaint got registered. I waited for a week hoping for some action but in vain, there was no progress.

I wrote a fraud alert review on the fraudster’s Google review page but Google will not approve it.

Realizing that I would not get help from anywhere, I wrote a threatening email to the fraudster to remove my Registration ID from their website. However, my email bounced back. Eventually, I shared the same message on their WhatsApp number. They got scared and removed my ID from their website and assured me that they would not use my name going forward. While this provided me some relief, I remain uncertain about the extent to which they may have defrauded investors using my identity.

The Truth

Over a month has passed since the incident, yet the fraudulent website operated by the scammer remains fully functional, posing an ongoing risk of further defrauding unsuspecting investors.

In an effort to safeguard investors, SEBI has made the Registration IDs of all RIAs publicly available. However, this data is being extensively misused by fraudsters. As a result, RIAs find themselves on the receiving end of complaints filed by deceived investors on the SCORES portal, despite the fact that the fraudulent activities were perpetrated by other individuals.

The majority of fraudulent activities are carried out by individuals who operate outside the regulatory oversight of SEBI. SEBI faces the challenging task of effectively addressing these unregulated fraudsters.

How you can protect yourselves?

Given the widespread rise in financial and investment frauds, I urge my readers to be cautious and vigilant:

1. Use SEBI Portal (https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmId=13) to find the details of an RIA
2. Have a video call with an RIA to validate the identity of the person
3. If you want to engage with an RIA, ask them to initiate the communication from the email registered on the SEBI portal
4. Ensure that a contract is signed between the RIA and you before you transfer any money to his account
5. RIA can only ask you to transfer Advisory Fee, never transfer your investment money to them

The writer is a SEBI Registered Adviser and Founder of FinMyn (https://finmyn.com). He provides Fee-Only Financial Planning and Investment Advisory services.

He has advised many clients in India, the US, Europe, the Middle East, South East Asia, and Australia.

To know more about him, click on https://finmyn.com/about/.