HYDERABAD: A former QNet, Multi-Level Marketing (MLM) company, member has been arrested by Cyberabad police for committing a similar offence by establishing a company under the name of ‘SERFA Marketing Pvt Ltd’ in Visakhapatnam on Wednesday. The Kukatpally Police unearthed the scam based on a complaint filed by a housewife.
Baki Srinivas Reddy (28), a BSc computers graduate, started a firm similar to QNet after he lost his `13 lakh investment in QNET. He registered his company with Registrar of Companies at Vijayawada. Interestingly, the accused followed the same tactics as QNet such as providing tour packages, watches, dietary products, beauty products, suit lengths, etc.
The accused designed the scheme in a pyramid structure, where every member is supposed to add new members on the right and left the side of the tree. One had to pay `12,000 to become a member. They would get `4,000 for introducing new members. Everyone in the tree would get 10 per cent commission on each new entrant.
“Though the fraudsters operated from Visakhapatnam, their main target was Hyderabad. They also have an office in Kukatpally. Out of about 5,000 members, they have 3,267 members in Telangana,” police said. The scheme became rampant in 16 states including Telangana, Andhra Pradesh, and two union territories in less than a year.