Class-7 dropout's company cheats 20 lakh people of Rs. 1,200crLast updated on Sep 09, 2018, 01:28 pm
On Saturday, following a tip-off, the Cyberabad police in Hyderabad busted a major, Rs. 1,200cr marketing money circulation fraud, that cheated a whopping 20 lakh people.
Two key suspects in the scam, Radhe Shyam and Surender Singh, were arrested.
Notably, Radhe Shyam is a Class VII drop-out, while Singh is a graduate.
Currently, further investigations are underway to verify the quantum of cheating.
Details of the bust
The scam was busted by police following a tip-off from the Economic Offences Wing of the Cyberabad police.
After the arrests, Rs. 200cr was seized from several bank accounts belonging to the offenders in various banks such as IndusInd Bank, Bandhan Bank, Axis Bank, HDFC Bank etc.
Further, the duo had scammed people from multiple states including Haryana, New Delhi, Madhya Pradesh, Odisha, etc.
The duo targeted youngsters, homemakers, and retired employees
The modus operandi of the scam involved tricking and trapping gullible people with promises of high part-time income.
Their primary targets included young people, homemakers, and retired employees.
Additionally, the duo also allegedly set up an investment company, Future Life Care Global Marketing Pvt. Ltd., registered in New Delhi, to carry out their fraudulent operations.
How the duo scammed people of crores of rupees
The duo floated a multi-level marketing scheme that would require each person enrolling to enroll two other people.
A joining fee of Rs. 7,500 was charged, and the people enrolling were promised returns of Rs. 2,500 every month for two years, in addition to Rs. 500 commission for each person roped in.
Additionally, investors were promised more profits if they roped in more people.
How the company incentivized people to rope others in
"The company also prescribed ten different levels for the investors which would govern the profits they earn from the company, the more enrollers they bring to the company, the more profit they would earn," explained Cyberabad Police Commissioner V C Sajjanar.