Former state bank loan officer arrested over Rs. 20 Mn fraud

A former loan officer of a state bank has been arrested for providing loans using forged documents to businessmen, causing a loss of nearly Rs. 20 million to the bank.

The 40-year-old resident of Pelawatte, Pannipitiya, was arrested by officials from the Criminal Investigations Department (CID) on Tuesday (15).

Investigations have revealed that the suspect had received a commission for the loans and had drafted forged documents to grant loans to several individuals, including businessmen. 

The suspect had obtained money from the loan beneficiaries for the drafting of forged documents.

The suspect is due to be produced before the court, while the CID and the Financial Crimes Investigation Division are conducting further investigations. (Islandnews)