In a recent development, a former Delhi lawyer has been arrested for operating a fraudulent ₹100-crore Ponzi scheme that reportedly duped over 200 individuals.
The Economic Offences Wing (EOW) of the Delhi Police has made a significant arrest in a case of a Ponzi scheme that allegedly defrauded around 200 people of nearly ₹100 crore. A 36-year-old former advocate named Sanjay has been taken into custody.
According to the EOW, Sanjay and his associates, including his partner Deepak Thakur, are the masterminds behind the scheme. The accused had been operating under the banner of 'Tradecop', promising high returns on share market investments.
The victims were lured with a promise that their money would double within 25 months. However, the accused misrepresented having developed in-house algorithms capable of generating over 20% monthly returns from the financial market.
An FIR was registered in February this year following a joint complaint by several investors. The investigators traced the money trail and found that deposits made by investors were diverted to another entity, Tradecop Portfolio LLP.
During the investigation, it was discovered that the accused had been using the funds collected from new investors to pay returns to old investors. This is a classic characteristic of a Ponzi scheme, where returns are paid to existing investors from funds collected from new investors, rather than from profit earned.
The accused, Sanjay, and his partners claimed they would offer 8% fixed monthly returns, with 4% as interest and 4% to be repaid from the invested amount. Initially, the investors received returns for a few months, but later payments stopped, and the accused then disappeared without refunding the money.
Sanjay's wife is named as a co-accused in the case and is currently absconding. The other co-accused in the scheme, besides Sanjay and Deepak Thakur, include various unnamed associates involved in the fraudulent activities; specific names beyond Sanjay and Deepak Thakur are not publicly detailed.
At least four other cases have been registered against the accused and his associates in Delhi, Haryana, and Uttarakhand. To date, 56 complainants have approached the EOW alleging losses amounting to ₹2.5 crore.
Steps are being taken to attach the property in Mathura, Uttar Pradesh, worth about ₹10 crore, which is believed to have been purchased with some of the proceeds from the scheme. Sanjay completed his graduation from Delhi University through correspondence and later pursued law from CCS University in Meerut. He had practiced at the Karkardooma Court for two years.
It is worth noting that the Securities and Exchange Board of India (SEBI) had already barred such schemes in a September 2022 circular. The public is advised to exercise caution and verify the authenticity of any investment opportunities before parting with their hard-earned money.
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