MLM scam: police recover ₹1.75 crore

Only 9 of 5,170 investors give statements

A week after busting a multilevel marketing scam, the Economic Offences Wing (EOW), Unit I, of the Navi Mumbai Crime Branch has recovered close to ₹1.75 crore.

The multilevel marketing firm had allegedly collected ₹18.29 crore from over 5,000 people in two months. The firm, AM Pictures, began its operations on August 1 and had registered 10,000 customers since then. A total of 5,170 customers then activated their accounts and invested varying amounts, which added up to ₹18.29 crore. The firm promised to give 1% interest to each investor every day for 400 days. Of the 5,170 investors, 3,426 were paid an interest of ₹1.48 crore over two months.

A raid on September 28 at Aamby Valley helped police arrest six people attached to the scheme. The police have identified one more accused and will arrest them soon. They have also seized 33 bank accounts. The accused created a website named, for which customers were given a login ID and password for transactions.

So far, only nine investors have come forward to give their statements. “The investors were contacted by agents. Most of the agents are afraid of criminal proceedings against them and are reluctant to approach us to give any details. Most investors would still be unaware of the fraud that they are a victim of and might approach us once they realise that the returns won’t be coming in,” senior police inspector Shyam Shinde from EOW Unit I, said.

Of the ₹1.75 crore recovered, ₹75 lakh was seized from bank accounts, ₹21 lakh during house searches, ₹35 lakh was paid to a showroom to book a Fortuner car, while the remainder was recovered from an event management firm and other agencies where the accused had paid for the launch event of their programme in Aamby Valley.

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Printable version | Jun 3, 2020 6:53:15 AM |

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