investors lose Rs.25 crore in Ponzi scheme, three arrested
MUMBAI, June 26 -- The property cell of the crime branch has arrested three men for a Ponzi scheme in which several investors were duped of around Rs.25 crore. The accused also allegedly threatened and assaulted their clients, said the police.
The accused were identified as Ankit Jain, Hetul Ranka and Omkar Singh. Jain and Ranka are childhood friends with a masters in business administration (MBA).
They began AJ Enterprises, a firm with an office in Goregaon which supplies computer accessories and other stationery. The police said, the accused told their customers that they were to launch an A4 size paper manufacturing factory and offered part ownership of the new franchise to clients in exchange for deposits.
The police said the accused told clients they had another investment business which offered 18% monthly returns.
They hired agents to convince prospective clients that they would make a 10%-15% interest on their investments, and promised the agents a commission fee, said the police. The police crime branch has recorded the statements of 200 victims, some of whom even sold their property, gold ornaments, and took loans. Police said, as of now the fraud adds up to around Rs.25 crore.
The accused soon stopped paying interest to their clients and refused to return the original amount. When clients protested the accused threatened them, beat them, and filmed the assault in a dark room in their office, said the police.
The police heard of the crime last week, conducted a preliminary investigation, then registered a case against the accused and arrested them.
Police said that Jain and Ranka have committed similar crimes before too....
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