Two held on charge of operating money chain fraud


The Palarivattom police on Tuesday arrested two persons on the charge of financial fraud running into ₹1 crore in the guise of running a multi-level marketing network company. The arrested were identified as Joshy, 51, of Vennala and Bezhson, 52, of Karanakkodam. They are accused of collecting money from people, including friends and families, by enlisting them in their multi-level marketing network company by the name Crowd One since 2020. The lure of the alleged fraud was the €2.50 that they were promised would be credited in their accounts every week in return for their investments. “The focus was on the return while nothing concrete was revealed about the company per se or its business. The investors neither received returns nor their principal investments. The funds so usurped were converted into bit coins worth ₹1 crore and transferred into various accounts,” said Palarivattom police sources. More accused, including two key accused who are suspected to be abroad, remain to be nabbed. Further details about the bit coin transactions and the fraud itself would be known only on arresting them, sources said. The arrested have been booked under IPC Section 406 (criminal breach of trust) and 420 (cheating and dishonestly inducing delivery of property). A team formed by District Police Chief (Kochi City) C. H. Nagaraju and supervised by Deputy Police Commissioner V. U. Kuriakose and Assistant Commissioner Y. Nizamudheen made the arrest. The team comprising Inspector S. Sanal, sub inspector Akhildev, assistant sub inspector Ranjith, and civil police officers Mahin, Pareeth, and Arun made the arrest.

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Printable version | Jun 9, 2022 5:04:16 pm | https://www.thehindu.com/news/cities/Kochi/two-held-on-charge-of-operating-money-chain-fraud/article65357338.ece