Three arrested for running Ponzi scheme, duping investors of ₹25 crore, assaulting clients

MUMBAI: Police arrested three men for a ₹25 crore Ponzi scheme, threatening clients and failing to return investments.

MUMBAI: The property cell of the crime branch has arrested three men for a Ponzi scheme in which several investors were duped of around ₹25 crore. The accused also allegedly threatened and assaulted their clients, said the police.

Arrested computer hacker and cyber criminal with handcuffs, close up of hands (Getty Images/iStockphoto)

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). Together they began AJ Enterprises, a firm with an office in Goregaon which supplies computer accessories and other stationery. According to the police, the accused told their customers that they will soon be launching a factory to manufacture A4 size paper and began offering part ownership of the new franchise to clients in exchange for deposits.

The police said the accused also promised clients that they had another investment business which was offering 18% monthly returns. They even 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 police inspector Mangesh Desai of the property cell.

So far the police crime branch has recorded 200 people who bought into their lies, some even selling their property, gold ornaments, and taking loans.The police have recorded the victims’ statements and as of now the fraud adds up to around ₹25 crore.

The incident came to light after the accused were short on money and 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 through their sources last week, conducted a preliminary investigation and then registered a case against Jain, Ranka and Singh and arrested them. The police added that Jain and Ranka have cases against them for previous crimes with a similar modus operandi.

The three were produced before the court and their police custody was extended till June 30. The police have also booked Jain’s father Deepak Jain but he has not been arrested yet.