US based investment management firm, Goldman Sachs Services Private Limited on Tuesday said that it was working with law enforcement officials to activate criminal proceedings against a senior official of its company for illegal financial transactions.
The company had registered a complaint against 36 year old Ashwani Jhunjunwala who was serving as Vice President (Forex and Equity Settlements) for alleged financial irregularities to the tune of ₹38 crore. A complaint was filed by the company in Marathahalli police station in Bengaluru on 8 September.
“In addition to the immediate dismissal of this employee, we are engaged with the authorities to activate criminal proceedings," the company said in a statement issued to the media on Tuesday.
The Times of India first reported this story on Tuesday.
According to the police, Jhunjhunwala, with the help of another ex-employee, Vedanth Rungta (28), with an intent to make wrongful gains, misused his position in the company and fraudulently misappropriated funds amounting to $5.4 million (approx Rs. 38 Crores) by transferring the said amount to a private account in Industrial and Commercial Bank of China (ASIA) Limited.
The alleged scam came to light on 6 September, when one subordinate (Gaurav Mishra) raised a query in respect of two transactions, which were escalated internally. An internal review duly identified Ashwani as having directly involved with the said transactions. Ashwani had used their system to create Standard Settlement Instructions (SSR) to make the illegal payments. The police say that Jhunjhunwala had losses to the tune of ₹47 lakhs playing online poker, has a loan of ₹25 lakhs from a private banks among other debts.
Jhunjhunwala had carried out transfers by deceiving the juniors and using their login.
The complaint states that Jhunjhunwala logged into his junior’s computers on the pretext of reviewing their work, send them away to get water or run some errands and transfer the money.
The police have registered complaints under sections of the Indian Penal Code (IPC) in sections including criminal breach of trust and cheating against the two individuals.
The police said that an alert request was raised to the concerned bank where the money was fraudulently transferred, to stop and prevent the transfer of money.
Today the said Bank has stopped the transfer and transferred back the entire amount to the Company, the police said in a statement.