Mumbai, Jan 29 (NIE): The former director of the National Spot Exchange Limited (NSEL), Joseph Massey, was sent to police custody till February 5 by a special court on Monday in an alleged fraud case. Massey was arrested on Sunday by the Mumbai Police Economic Offences Wing (EOW). While he was earlier named as a witness by the EOW in its previous chargesheets in the alleged fraud case, the EOW claimed that after receiving a forensic audit, Massey’s role in the conspiracy as an accused came to light. Former NSEL chief finance officer Shashidhar Kotian, who was arrested last week, has been sent to further police custody till Wednesday.

On Monday, the EOW claimed that as NSEL’s director between 2005 and 2011, Massey had attended all board meetings and was allegedly responsible for all criminal activities of NSEL, including launching of illegal pair trade contracts and receipt of deposits from investors against fictitious transactions. Special Public Prosecutor Sunil Gonsalves told the court that Massey was a member of the audit committee and responsible for falsification of the minutes of the meeting dated May 26, 2010, in which NSEL’s balancesheet was approved by the board members.

Gonsalves further told the court that 57-year-old Massey’s custody was needed to make him confront Kotian. He also said that Massey had to be confronted with email evidence found in the forensic auditor’s report, as he had earlier misled the investigators regarding his presence in the meetings.