In a startling case of financial misconduct, two employees of Erode Cooperative Urban Bank have been apprehended for their alleged involvement in a major gold jewellery misappropriation scheme. The accused, identified as S Ganesan and S Sivakumar, held positions of trust within the bank's gold loan department.
The fraudulent activities came to light during a routine internal audit that revealed significant discrepancies in the bank's gold jewellery records. Preliminary investigations suggest the employees systematically siphoned off gold ornaments that were pledged as collateral for loans by unsuspecting customers.
The Modus Operandi
According to bank officials, the accused employed sophisticated methods to conceal their illicit activities:
- Manipulating digital records of pledged jewellery
- Creating false documentation for gold transactions
- Exploiting loopholes in the bank's internal monitoring systems
- Targeting accounts with minimal transaction activity
Investigation and Arrest
The Brough Road police, acting on a formal complaint filed by bank authorities, launched a comprehensive investigation into the matter. After gathering substantial evidence, law enforcement officials moved swiftly to arrest both individuals.
Police authorities have confirmed that the accused are currently in judicial custody while the investigation continues to determine the full extent of the financial damage and identify any potential accomplices.
Bank's Response and Customer Assurance
Erode Cooperative Urban Bank management has assured customers that their assets remain secure and that the institution is implementing enhanced security measures. The bank has initiated a complete review of all gold loan accounts and pledged full cooperation with investigating authorities.
This incident has raised serious questions about internal controls within cooperative banking institutions and highlighted the need for more robust auditing mechanisms to prevent similar occurrences in the future.
