We’ve heard about a lot of scams in India or all over the world, but you’ve heard of the PONZI SCAM?

Not sure about it, right?

What is a ponzi scheme?

Scam in which a gullible group is enticed with the promise of very high returns in a short period of time but is based on paying off the early ‘investors’ from the cash from (hopefully ever increasing number of) new ‘investors.’ The whole structure collapses when the cash outflow exceeds the cash inflow. The originators of the scheme, however, usually disappear with large sums a few days before the crash. Named after Charles Ponzi  (1882-1949), an Italian immigrant to the US who, during 1919-20 collected more than fifteen million dollars from some 40,000 eager people by promising to double their investment in 90 days.




Rs 3700 crore noida fake like scam: how lakhs lost their money

Lakhs of people who were allegedly duped of an estimated Rs 3,700 crore by a Noida-based company might get back part of the money they had invested in the click to earn scheme. Investigating agencies probing the scam by Ablaze Info Solutions Limited have frozen two bank accounts with deposits of more than Rs 500 crore. Besides they have also seized other assets worth crores of rupees owned by Anubhav Mittal, the arrested founder and director of the company.

Uttar Pradesh police have received more than 400 complaints, some from abroad, in the last two months over non-payment of dues by the company.

“The good news for investors is that the cops  have seized Rs 524 crore in banks and also assets worth several crores. This money will be used to pay back to those who have made investments to the company. But this job will be carried out by the court not by police,”

The attached assets, according to the cops, include balances in 14 bank accounts sum of Rs 543.81 crore, a fixed deposit of about Rs 52 crore with a Hyderabad-based mobile Payment Gateway company named Paynear Solutions, and a villa at Jaypee Greens in Greater Noida, whose estimated worth is put at Rs 3.6 crore.

This case is also being investigated by Uttar Pradesh STF, Income Tax Department and the Serious Fraud Investigating Organisation.

The central probe agency had said the fraudsters allegedly cheated about 6.5 lakh gullible investors of an estimated Rs 3,700 crore, a fraud many more times in value than the infamous Saradha chit fund scam of West Bengal and Assam which is pegged at Rs 2,500 crore.

Anubhav Mittal, 26, is now behind bars, accused of swindling Rs 3,700 crores from 7 lakh-odd people through one of the biggest internet scams in recent times.

On February 2, the Uttar Pradesh special task force (UP-STF) had arrested Anubhav Mittal, company’s chief executive officer, Shreedhar Prasad, and technical head, Mahesh Kumar.

Later, the STF also arrested Atul Mishra, a relationship manager with Yes Bank, for allegedly providing Mittal prior information about any possible raid or investigation based on reports of suspicious transactions.

“In the ongoing investigation, Mittal’s wife, Ayushi, who is company’s current director, and his father, Sunil, who was a former director, have been officially declared as accused in the case documents. Teams are searching for them. If they are arrested, their names may figure in the first chargesheet, else we will file supplementary chargesheets. Search for them was conducted in Ghaziabad, Hapur and Noida,”

Mittal had claimed that the company — Ablaze Info Solution Pvt Ltd — was used to promote specific social media pages and increase internet traffic to specific pages.

According  to the cops that he lured investors with weekly returns and promise of bonus on bringing in more investors. The investigators said that the accused promoted four systematic investment plans that offered various incentives upon investment.

However, the SIT has, so far, found no other source of revenue besides the subscription charges paid by members. The membership fee was circulated for paying commissions and meeting out the establishment expenses.

A probe by Enforcement Directorate is also on in the case after it registered a case of money laundering on the basis of the FIR registered by the UP-STF.

Through his scheme, Social Trade, that netted around 6.5 lakh investors, Mittal offered money to investors for `liking’ posts on social media profiles to increase traction and promote some web pages. Memberships cost between Rs 5,750 and Rs 57,500 and a return of Rs 5 was offered per `like’.

Mittal senior, however, continued to hold joint accounts with his son whom he “ousted” from ancestral property in 2016.An STF team visited Suneel’s house on Sunday but did not find him there. An investigating officer said Suneel had timed his exit strategically to evade police action.