Although the category ´B´ financial institution did not reveal the amount embezzled by him, it said most of the checks are issued in his name. Two other individuals - Jay Kumar Yadav and Surendra Kumar Pradhan - and a firm are also involved in the scam, along with Niraj Nepal, the bank´s Kuleshwar branch manager, said Jasoda Sainju, CEO of the development bank.[break]
The entire episode transpired after these people and a firm lured some individuals into transferring the money to their accounts, according to Sainju. “But since the fraudsters presumably pledged relatively higher interest rates and promised to return the money in short period of time, the individuals readily accepted the offer,” Sainju said.
Based on the amount transferred to the accounts of fraudsters, branch manager Niraj Nepal issued good for payment checks. But instead of locking the amount equivalent to those mentioned in checks, Nepal allowed the fraudsters to withdraw the deposits.
Following this, the fraudsters fled with depositors´ money, estimated at Rs 210 million, according to Sainju. “And at the same time the checks that were issued by the bank were also handed over to other individual and firms,” she said. “This dealt a double-whammy, as depositors, on one hand, lost money, while those who were handed over the checks were not able to retrieve the money from the bank.”
Although assets of people involved in the scam have already been frozen, the delay in conclusion of the investigation has made people who handed over the money to fraudsters as well as those who received checks worried.
“We are currently studying the genuineness of the cases that have currently been reported,” Sainju said. “Victims should not worry as they will be extended the payment once the investigation is complete.”
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