Duo in India caught carrying out ₹12 billion multi-level marketing scheme
- Radheshyam and Surender Singh worked in cohesion to dupe nearly 2 million people out of ₹12 billion.
- Together they ran a
multi-level marketingscheme (MLM) scheme promising quick returns on investment.
Cyberabad Policehas detained the two perpetrators but a third is still on the loose.
The Economic Offences Wing (EOW) of the Cyberabad Police in Hyderabad, India confiscated ₹2 billion from the bank account’s of the accused after a citizen from Kukatpally altered the authorities about suspicious activity.
Their plan was simple. Set up an
According to the police, the duo set up Future Maker Life Care Global Marketing Pvt Ltd (FLMC) with Radheshyam as the chairman and Surender Singh as the distributor three months ago. They even registered it with the Registrar of Companies.
Thus, began their operation in Hyderabad of entrapping more than 20,000 customers, most of whom were from the states of Haryana, Madhya Pradesh, Maharashtra and Orissa. The target demographic was youngsters, homemakers and retired employees.
The scheme itself was a binary model. Once a person signed up for it with an initial fee of ₹7500, they would have to get two more people to sign up creating a never-ending chain. And since it’s a never ending chain, it leads to a mathematical impossibility and ultimately cheating.
It’s the simplest version of a
That’s a total of ₹60,000 ($830) in two years with a principal amount of ₹7500 ($104).
They’ve been charged under Section 3 of the Prize Chits and Money Circulation Schemes (PCMCS) Act of 1978, where it’s not only illegal to initiate such scheme but it’s also illegal to participate in them.
Any propagators of the scheme are held liable under Section 420 of the
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