A massive stock market fraud in Assam has shaken the financial community, leading to 59 arrests across the state. The scam was brought to light after Deepankar Barman, a 29-year-old who ran a company called DB Stock Broking, fled the city, leaving behind numerous duped investors. His case has exposed a deeper web of financial frauds operating across Assam, involving young traders who lured investors with promises of high returns and flashy social media lifestyles.
How the Scam Unfolded: Deepankar Barman’s company, DB Stock Broking, attracted investors with promises of high returns—up to 100% annually. However, in late August, Barman disappeared, locking his office in Guwahati and leaving investors without their expected payouts. The first warning signs appeared in late July when investors failed to receive their monthly returns.
The scam attracted attention when Barman’s investors, who had put in sums ranging from a few thousand to several lakhs, found his office closed. They protested outside his residence, and it soon became clear that Barman had duped many others. Initially, his association with a legitimate stockbroker, Angel One, gave his operation credibility. However, Angel One issued a statement denying any connection to Barman’s fraudulent company, revealing that he was not authorized to operate under their name.
Widespread Arrests and Investigations: Barman’s disappearance triggered a wave of similar revelations across Assam. The state police launched a crackdown, arresting 59 individuals involved in similar stock market frauds. These individuals, most of them young men, operated in towns and cities across Assam. Many of them presented themselves as “financial influencers” or expert stock traders, offering high returns on investments and showcasing lavish lifestyles on social media to build trust.
In Dibrugarh, 22-year-old Bishal Phukan was arrested for a scam involving over Rs 60 crore. Phukan, who flaunted his wealth online, promised returns of up to 30% in just two months. The authorities found that he had taken investments from people not just in Assam but also from states like Odisha and Kerala. Phukan’s case drew further attention when it was revealed that he had spent Rs 3 crore on a lavish wedding for social media influencer Sumi Bora, further emphasizing the connection between these scams and the creation of an affluent public image.
Modus Operandi of the Scamsters: The fraudulent traders attracted investors by claiming expertise in stock trading and offering high returns on investments, ranging from 7% monthly to 100% annually. Their operations were largely unregulated, and many did not have official ties to recognized stockbrokers. These scams often spread through word of mouth, as victims encouraged others to invest based on initial returns. In reality, the funds deposited by new investors were often used to pay earlier investors, creating the illusion of profitability. This “Ponzi scheme” method unraveled when the scamsters could no longer pay out as the demand for withdrawals exceeded the incoming investments.
Social media played a critical role in these scams. Many fraudsters posted pictures of luxury cars, expensive vacations, and lavish lifestyles to convince potential investors of their success. This appearance of wealth was key to building trust and expanding their operations.
Government and Law Enforcement Response: In response to the growing number of fraud cases, Assam’s Chief Minister Himanta Biswa Sarma stated that the Enforcement Directorate (ED) and Income Tax Department were involved in the investigation. The most significant cases are now being handled by the state’s CID, while smaller cases are being overseen by local district police. The state government has not ruled out involving the Central Bureau of Investigation (CBI) if necessary.
The scam has exposed gaps in the regulation of financial investments and the growing role of social media in perpetrating financial frauds. Authorities are urging the public to be cautious and verify the credentials of any financial advisor or investment opportunity before committing their funds.
Conclusion: Assam’s stock market scam has rocked the state, revealing the dangers of unregulated financial operations and fraudulent trading schemes. With 59 arrests and investigations still underway, the full scale of the fraud is yet to be determined. As authorities dig deeper into the scam, investors are urged to exercise extreme caution and avoid trusting financial influencers who flaunt wealth and success without verifiable credentials.
