HYDERABAD: A multi-level marketing money circulation fraud, operating from Haryana, that duped over 20 lakh investors across the country under the pretext of quick returns on investments and looted more than `1,200 crore from its customers, was busted by the Cyberabad police. The Economic Offences wing of the Cyberabad police arrested two key suspects -- Radheshyam and Surender Singh, belonging to Haryana and seized `200 crore from them. Another person is absconding.
According to Cyberabad commissioner V C Sajjanar they have set up an investment company by name Future Maker Life Care Global Marketing Pvt. Ltd (FMLC) and registered it with Registrar of Companies (ROC). They launched their operations in Hyderabad, three months ago, trapped more than 20,000 customers in the Telugu states and had collected huge amounts from them.
The scam came to light after a Kukatpally-based private employee lodged a complaint with police a week ago. He found the company’s claims suspicious after he approached them to invest based on an advertisement. Based on clues and evidences, Cyberabad police nabbed FMLC chairman Radheshyam and distributor Surender Singh from Haryana and brought them to the city on a transit warrant. Police said that Radheshyam is a class VII drop-out, while Surender Singh is a graduate. Both became friends while working for an MLM firm.
According to Sajjanar both the accused had initially worked for MLM firms, where they learned marketing techniques and thought of floating a company of their own and left the jobs. Radheshyam and his friend Bansilal floated the firm three years ago the firm and got registered with the Registrar of Companies (ROC) also. The duo along with Surender Singh initially started operations in Haryana and very soon spread to all north Indian states.
Their modus operandi was to lure gullible persons with a promise of high income and target youngsters, homemakers and retired employees.‘’They charged `7,500 for every person as joining fee for the scheme and the promise was that they would get a pair commission of `500 for joining two more new members apart from a credit of `2,500 every month for two years. This way, the cheated were promised `60,000 in two years for an investment of `7,500,” Sajjanar said.
“The victims were spread across the country and majority of them got attracted to the ads published in leading newspapers. An amount of `200 crore was seized from them deposited in various banks. The accounts in these banks have also been seized,” Sajjanar said.
Cyberabad police will write to RBI on banks
The accused accepted online payments into the 6 accounts operated by the firm in different banks. Police found that around `75 crores were deposited in the accounts on Friday alone. Though there was regular money flow into these accounts, none of the banks suspected the transactions, said Cyberabad police Commissioner VC Sajjanar. “We will write to the Reserve Bank of India on how the banks failed to identify the scam at an early stage.” he said