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**CITIBANK INDIA – FRAUD AND MONEY LAUNDERING BY 
MANAGER OF BANK **
FROM THE - JOURNALS of Monte Friesner ~ Financial Crime Consultant for WANTED SA ~
Monday February 07, 2011 >
WANTED SA this morning received information from The Economic Times.- The Enforcement Directorate will soon file a case of money laundering in connection with the Rs 400 crore fraud allegedly perpetrat ED by a Citibank employee.
Official sources said the Directorate, which has studied the details of the police FIR in the case and scrutinized other aspects of the scam, has decided to file a case under the stringent Prevention of Money Laundering Act.
The scam, which came to light late, last year, shook the banking sector. Investigations into the irregularities at Citibank Gurgaon branch came in the wake of a complaint that the bank was offering abnormal returns on an investment scheme for investors.
It was found that relationship manager Shivraj Puri had allegedly collected the money, including from certain top corporates, on the basis of a fake SEBI circular that claimed the scheme had the market regulator's approval.
Securities and Exchange Board of India (SEBI) later wrote to the bank saying no such scheme was approved by it.
The sources said the ED case will focus on Puri and others who were involved in laundering of such huge amount of money.
Interestingly, the Income Tax department has already began scrutinising the investments and tax payments of some high net worth individuals who were allegedly duped by Puri.
Under the PMLA, the Directorate has the right to attach both movable and immovable properties of the accused.
The entities whose funds were diverted by Puri into the accounts of his relatives include Hero Corporate Services (Rs 13.75 crore), OKS Sapan Tech (Rs 2 crore) and Satyam Auto (Rs 25 crore).
Others include Mayar Infratech (Rs 24 crore), Spaid (Rs 62 crore), Karopat Pad (Rs 8 crore), Sunil Kant and Sons (Rs 3 crore), Aero Infratec (Rs 25 crore), Hero Exports (Rs 97 crore), Rekha Munjal (Rs 5 crore), Munjal Investments (Rs 2.5 crore) and Munab Braej (Rs 71 crore).
In December last, Puri was taken into custody for allegedly duping about 40 high net worth investors and corporate entities to the tune of Rs 400 crore.
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