MLM fraud: More skeletons tumble out as investors cry foul

  Panic gripped the investors of multi-level marketing companies after they duped around Rs 400 crore from over lakhs of investors on the pretext of providing them high returns. Investors are running from pillar to post to get their invested money back.

According to a senior police official, Gold Sukh Trade India Ltd duped around Rs 203 crore from its 1.5 lakh investors and police have arrested 16 persons, including three directors, in this connection. The only question in the minds of the investors is that whether they are going to get their money back.

However police officials deny that it is not their work to return the money. Their duty is just to nab the criminals.

Likewise, another MLM firm, Eve Miracle Company duped 19 thousands investors of about Rs 145 crore. The company expanded its business in states of Maharahstra, Madhya Pradesh and Rajasthan, but the police were unaware of its activities. Recently, the Shyam Nagar police arrested Shivraj Sharma, director of the company. According to police, 14 kg of gold was also seized from the office of Eve Miracle.

In another case, Aditya Cosmos Pvt Ltd duped around Rs 19 crore from its investors and gold worth Rs 2 crore was seized from their officer. Company's two directors, Guru Baksha Singh and Ghanshyam Singh, were arrested earlier in the Gold Sukh case. Later, third director Guru Tej Singh was also arrested by the Vaishali Nagar Police.

Recently, another MLM firm Swarna Yug came under the scanner of the police. Before the arrest of company's directors Kamlesh Pareek and Pawan Pareek, they had amassed more than Rs 3 crore from its investors.

Another Sankalp Techno Trade Companies duped its investors on the pretext of buying them land at cheaper cost near Chaksu. Swarna Labh, an MLM firm on Tonk Road, also came under the scanner of the police. The Bajaj Nagar Police seized the documents of the company and investigation are on.

Ref: Daily Bhaskar

Investors petition Collector on MLM fraud

  Persons who had invested in a Coimbatore-based Multi Level Marketing (MLM) firm BirillacSolutions (P) Ltd. that promised heavy returns and monthly mobile recharge for a deposit of Rs. 500, petitioned the Collector here on Monday seeking action on the persons who cheated them and to help them get back the money.

One of the petitioners, S. Ashok Kumar of Erumapatty in Namakkal Taluk, told The Hindu that they petitioned the Superintendent of Police and Namakkal Sub Collector claiming that the accused – Subburayan, Head Constable in Tiruchengode Sub Division Camp Office and Mohanraj, a veterinary sales representative – had duped 260 persons to the tune of Rs. 1.93 lakh.

“More victims contacted us after seeing reports published in newspapers and now we have learnt that close to 40,000 persons in Tamil Nadu, Kerala, Maharashtra and Puducherry were cheated to the tune of nearly Rs. 2 crore”, Ashok said.

According to him nearly 20,000 of the victims are from Namakkal.

He claimed that the victims were cheated by the false promises made by the Namakkal heads of the firm by assuring attractive returns in the form of earning upto Rs. 2,000 per day in addition to free tours and other surprise gifts.

“They also gave us online receipts for our payments , but the websites has also been closed down now ”, he added.

Additional Superintendent of Police (PEW) T.P. Suresh Kumar, who received the petition during the grievances meet held at the District Collectorate, said that it has been forwarded to the Tiruchengode DSP A. Sujatha.

“We have asked her (DSP) to submit a report on the petition in a week's time, based on which action will be initiated”, he concluded.

‘Nearly 20,000 of the victims are from Namakkal'

Ref: The Hindu.

MLM fraud: Another shocker for Jaipurites

A multi-level marketing company, Avanee Trade Link Private Ltd allegedly duped its investors by offering high returns under the Jyoti Nagar Police station area on Tuesday.

A police official said that the police have received the complaints against the company's directors Kunal Ghai, Sammi Ghai and its officials Naveen,Vishnu and Dr Soni from four investors, Babu Lal, Radhe Shyam, Khayali Ram and Mohar Singh, that the company offered them high returns.

Later on, they did not give them the returns they had promised, the foursome alleged in their complaint.

As per the complaint, the accused offered the investors an interest of Rs 523 per month on an investment of Rs 5,000 and promised to pay Rs 4.44 lakh within 11 months if a sum of Rs 1 lakh is invested by them.

The complaint said due to tempting offers, the investors invested a certain amount, but the accused neither returned the principal amount nor paid the interest on the money invested.

The police official said the directors of the company have been arrested on the complaint of the investors and interrogation is underway.

The office of the accused has been raided and computers have been seized. Further investigations are on, he added.

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Money chain fraud: DGP

 The Kerala High Court on Wednesday directed the DGP to file a statement regarding the status of the investigation initiated against the multi-level marketing companies.
A Division Bench comprising Acting Chief Justice Manjula Chellur and Justice C N Ramachandran Nair issued the directive while considering a petition challenging the recent government order. The state had issued an order stating that genuine direct marketing should not be disturbed while investigating cases against money chain frauds. The petitioner alleged that the state passed the order with a malafide intention to protect the culprits in money chain cases.
The petitioner further submitted that the state had issued the order nullifying the penal provisions of Price Chits and Money Circulation Schemes (Banning) Act 1978 and added that the government failed to consider the fact that money chain and network marketing companies were doing illegal business without taking any proper licence from the sales tax department.
The petitioner said that as many as 1,000 cases have been registered across the state against Amway India Enterprises, RMP Infotect Private limited, DXN and Nano Excel company in connection with money chain fraud.  Additional Advocate General K A Jaleel informed that the state is against the fraud committed by the companies.
(Ref: http://ibnlive.in.com/news/money-chain-fraud-dgp-asked-to-file-statement/201097-60-116.html)