Five top executives of Platinum Hern Pvt Ltd, a Dadar-based firm running the Torres store, have been booked for allegedly operating a Ponzi scheme that defrauded investors of Rs 13.5 crore. The case was filed at Shivaji Park Police Station after a complaint by Pradipkumar Vaishya, a vegetable vendor, who lost money in the scheme.
The accused include:
- Directors: Sarvesh Surve and Victoria Kowlenko
- CEO: Taufiq Riya (aka John Carter)
- GM: Tanya Kastova
- Store In-charge: Valentina Kumar
The Ponzi scheme promised 25% monthly returns and a 6% weekly interest on investments in moissanite stones. Investors initially received payments but were cut off after December 30, 2024.
The fraud affected individuals in Mumbai, Navi Mumbai, and Mira Bhayander, with at least seven investors losing Rs 13.48 crore. A case under various sections of the Bhartiya Nyay Sanhita and MPID Act has been filed. The investigation is ongoing, and the Economic Offences Wing (EOW) will take over the case.
Additional Information
A Ponzi scheme is a type of investment scam where returns are paid to earlier investors using the capital of newer investors, rather than from profit earned by the operation of a legitimate business. The scheme leads people to believe that their investments are generating returns when, in fact, the money is simply being redistributed.
Here’s how a Ponzi scheme typically works:
- Initial Attraction: The scammer attracts investors by promising high returns with little or no risk.
- Early Payments: Early investors receive the promised returns, often enough to encourage them to reinvest or refer others.
- Growing Dependence: New investors are brought in to pay the returns of the earlier ones.
- Collapse: The scheme eventually collapses when the number of new investors slows down or when the scammer can no longer pay out the promised returns. This is because no real profits are being generated.
Ponzi schemes are illegal in most countries due to their fraudulent nature, and they typically result in significant financial losses for the majority of investors.
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Disclaimer
This article is for educational purposes, focusing on the relevance of the topic for UPSC aspirants. Students should stay updated on further developments and refer to official sources for comprehensive preparation.
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