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This investment analyst paid a heavy price for being too honest

Sep 15, 2015, 18:31 IST

Flickr/Wiros

Wall Street investment analysts tend to be nice to the companies they cover - even if it means stretching the truth a bit.

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But according to a new 3,000-word feature from the Wall Street Journal, one investment analyst was a bit too honest a few years back - and allegedly paid a price for doing so.

Back in 2012, Nitin Mangal, formally of Veritas Investment Research, co-wrote a research report suggesting that investors sell shares in companies that were part of a big real-estate and financial conglomerate, Indiabulls Group.

Then more than two years later, police arrested him and took him on a 2,000-mile, five-day journey along with an Indiabulls lawyer, Ajay Grewal, according to the WSJ's Geeta Anand.

"For most of the trip, Mr. Mangal said, Mr. Grewal and the police were cordial to him, sharing hotel rooms with him and dining with him," reports Anand. "But at a dinner in Mumbai, Mr. Grewal threatened him, Mr. Mangal said. He said that Mr. Grewal told him that people who don't cooperate with powerful companies like Indiabulls can be physically harmed. Mr. Grewal denied making such statements."

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Later that evening, according to the WSJ, Mangal alleges that he was chained to his bed.

"I feared for my life. I didn't know what they would do to me," Mangal said. He was eventually brought to Gurgaon where he was jailed for 12 days.

Meanwhile, police maintain that "the purpose of the trip ... was to gather evidence related to alleged defamation and other accusations tied to his research report." Furthermore, Grewal "agrees he went on the trip with them but says he didn't threaten or intimidate Mr. Mangal," according to the WSJ.

So far, Mangal has not been charged with committing a crime, yet. However, Anand reports that a hearing will take place in October.

Check out the whole fascinating story at WSJ.com.

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