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Economic Offender: CBI Arrests Ponzi Scam-Accused Deported From Riyadh At Delhi


The Central Bureau of Investigation apprehended an absconding accused (Economic Offender) who had been deported from Riyadh in Delhi. He was involved in five cases filed with the CBI in Chennai.


How he ran a Ponzi Scheme?

It was alleged that the accused and others formed a private company in Kasargod (Kerala) and made false promises and representations/ declarations to the general public, promising to return their investments with a higher/exorbitant rate of interest after 61 days and also promising to pay a commission of 2% p.m. to the agents who mobilised the investments.

Economic Offender: CBI Arrests Ponzi Scam-Accused Deported From Riyadh At Delhi

During the investigation, it was discovered that between 2009 and 2011, all of the accused, including the arrested one, conspired at Kasargod and other locations to flog a fraudulent scheme called Forex trade (trading with foreign currencies), promising depositors a monthly return of 7% on principal and 2% to the agents for mobilised funds.
Also, collected large cash deposits from depositors to the tune of about Rs.9,93,68,000/- (approx.) and defrauded them by failing to repay the promised returns as well as the principal sum, resulting in a huge loss to the depositors.


Another case was filed based on charges that the accused forced the petitioner/complainant to make a deposit of Rs.50 lakh and agreed to pay the depositors monthly returns from his company. The complainant allegedly invested 19 lakh in the company in 2011 and the accused did not pay the complainant any returns or the principal sum.

A charge sheet was filed in the Court of Chief Judicial Magistrate, Ernakulam, following an investigation. The court declared the suspects to be Proclaimed Criminals.

So, beware where you invest and with whom. It is always better to do your due diligence before investing your hard-earned money.

Read more about: ponzi scheme
Story first published: Monday, March 29, 2021, 17:21 [IST]
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