'Jack, John And Boss': How Ketan Parekh Orchestrated Rs 65.77 Crore Scam Using Code Names - SEBI Probe

Ketan Parekh, the infamous stockbroker barred from trading for 14 years, is again under the scanner. A Securities and Exchange Board of India ( SEBI ) investigation revealed a Rs 65.77 crore securities fraud allegedly masterminded by Parekh with accomplice Rohit Salgaonkar and other entities.

In an elaborate show-cause notice, SEBI detailed how Parekh employed front-runners (FRs) to execute trades based on non-public information (NPI). His modus operandi involved encrypted communication through WhatsApp and aliases like "Jack," "Boss," and "John."

Alias Wonderland: How Parekh Operated
The report uncovered Parekh's use of multiple phone numbers to pass trading instructions. These numbers, saved under pseudonyms in various devices, were pivotal in relaying sensitive information.

"Prior to execution of suspicious trades, FRs were receiving trade instructions through WhatsApp chats or calls from a person whose contact number(s) was saved in the devices as Jack/Jack New/Jack Latest New/Boss, etc," the SEBI report stated. These contacts were linked to Parekh through phone numbers confirmed in witness statements and forensic analysis.

Cracking the Code: SEBI’s Investigation Tools
IMEI Analysis
Parekh frequently switched numbers but not devices, leaving a trail for investigators. By linking numbers to IMEI (International Mobile Equipment Identity) codes, SEBI tied multiple numbers to the same devices Parekh used.

"From the table above, it can be observed that the IMEI which was used for mobile number “XXX0308243” (number used by Ketan Parekh as explained above), was also used for mobile number “XXX7049917”, confirming that this number was also used by Ketan Parekh," the order noted.

Location Tracking
Call data records revealed that these numbers were active at Parekh's residence, Zaver Mahal, Marine Drive, Mumbai, between 9 PM and 6 AM.

Travel Correlation
Parekh’s travel history was cross-referenced with mobile location data. Numbers linked to him appeared consistently at hotels where he stayed, verified by hotel staff.

WhatsApp Evidence
In a WhatsApp chat retrieved from an associate, Sanjay Taparia, "Jack Latest" (a contact tied to Parekh) thanked Taparia for a birthday wish on February 15, 2023. This date aligns with Parekh’s PAN-recorded birthdate, February 15, 1962, further confirming his identity.

SEBI's Findings: A Well-Oiled Machine
The regulator concluded that Parekh orchestrated trades by transmitting NPI to FRs, leading to unjust profits. The evidence—aliases, IMEI connections, and travel records—painted a damning picture.

SEBI stated, "Upon analysis of these contact numbers, it was found that these numbers belonged to Ketan Parekh who was receiving NPI from one, Rohit Salgaocar. After receiving specific and timely instructions, directly or indirectly, from Ketan Parekh, the FRs used to execute orders and made unjust profits"