Thousands of Indian investors lose almost $100M in Ponzi scheme
What's the story
Thousands of Indian investors are struggling to recover nearly $100 million lost in a Ponzi scheme operated by Falcon Invoice Discounting. The company lured investors with promises of up to 22% returns, falsely claiming partnerships with major corporations like Amazon and Britannia. Since 2021, Falcon has raised approximately $196 million from nearly 7,000 investors but has only returned half of this amount.
Arrests made
Police arrest 2 in connection with fraud
In response to the fraudulent activity, Telangana Police arrested two individuals linked to Falcon Invoice Discounting. The authorities are currently on the lookout for Amardeep Kumar, the founder of Falcon and the prime suspect in this case. Meanwhile, victims of the scheme are exploring legal avenues to recover their investments. Ankit Bihani, a New Delhi-based jeweler and one of the victims, revealed that most investors were introduced to Falcon's platform through social media.
Investor concerns
Investors express uncertainty over recovering lost savings
The Ponzi scheme has left many investors in the dark about whether they will ever see their life savings again. Roopesh Chauhan, a tech employee who lost ₹1.5 crore in the scheme, said he was anxious, "It is my hard-earned money. We don't know when and how will we get it back." Similarly, S Smriti, an assistant professor who lost over ₹30 lakh, said the money she invested was all her savings.
Fraudulent schemes
Rise in fraudulent investment schemes alarms Indian authorities
The increasing prevalence of fraudulent investment schemes through fake apps and websites has alarmed Indian authorities. Earlier this year, Torres Jewellery was embroiled in similar allegations after promising high returns and suddenly shutting its stores in Mumbai. As part of their investigation into that case, police had seized valuables worth ₹35 crore from Torres.