November 12, 2019 | 11:14 AM IST
banking

Goldman Sachs VP arrested for siphoning company’s Rs 38 cr to pay debts

Bengaluru police on Monday arrested global investment bank Goldman Sachs vice president in the Rs 38 crore fraud for allegedly siphoning over $5 million of its funds to pay off his poker debts. His aide Vedanth Rungta was also arrested.
Ashwani Jhunjhunwala has been working with the company as VP- foreign exchange and equity settlements - for the past four years.
The incident came to light within two hours of the fraud as the company has an internal mechanism that detects suspicious activities. Jhunjhunwala was dismissed with immediate effect.

Speaking about his modus operandi the investigating officer Girish said, “Jhunjhunwala used the computers of three junior employees to transfer $5.3 million of the bank’s money. The incident took place on September 4 when he approached the three employees on the pretext of reviewing their work. He later sent them away for some time and used their systems to transfer the funds to a Chinese bank account in Hong Kong. The transferring of transactions took just 10 minutes. He will be produced before the magistrate on Wednesday.”

The 36-year-old allegedly ran into $70,000 debts by gambling online. In order to settle the same, he took a loan from the banks and borrowed from a few of his friends, but that was not enough. In August, Jhunjhunwala tried to increase the personal loan he had taken from a bank, but his application was rejected as he had defaulted on six earlier payments.

The duo was arrested after the legal head of the company Abhishek Parasheera registered a complaint with the Marathalli police station under Sections 408 (criminal breach of trust), 409 (breach of trust by a public servant or banker), 419 (cheating by impersonation) and 420 (cheating) of the Indian Penal Code on Sunday.


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