New Delhi, Dec. 12: Two former employees of Samsung have been arrested for allegedly defrauding the electronics goods company to the tune of Rs 19 crore.

The economic offences wing of Delhi police yesterday arrested Vivek Prakash, the company’s former vice-president, and R.S. Sahu, its former accounts manager. The duo allegedly cheated the company by producing false bills and documents.

Vivek is in police custody while Sahu is in judicial custody. Both now work in another Korean company, Kobian. An MBA from IIM Bangalore, Prakash is Kobian’s chief executive officer in India.

The assistant commissioner of police of the economic offences wing, M.K. Sharma, said the accused had embezzled funds to the tune of Rs 19 crore. Of this, they embezzled Rs 16 crore by issuing credit notes to distributors, which would then be adjusted by fake debit notes made in the name of the distributors and submitted to the company.

In January this year, when Samsung asked for the accounts, the two quit the company and joined Kobian. Samsung found out about the fraud in March and an FIR was registered. Vivek had bought property worth Rs 23.80 lakh in Noida from one R. Srinivasan but paid him in the name of SRPL, a Samsung agent, by showing it as a payment for services. However, Srinivasan’s company had not undertaken any project for Samsung.

Vivek also submitted fake bills for advertisements worth Rs 1 crore, purchase of equipment, and hotel expenses amounting to Rs 51 lakh.