Another Ponzi scam hits investors

AHMEDABAD: A new Ponzi scam came to light on Saturday after a case was filed with Navrangpura police for cheating against five persons. Police said that the group named in the case, Ilish Investments, has not been named in earlier cases. The officials added that they are investigating the probable links between the current case and previous major cases.
Navrangpura police officials said that Mohammed Iliyas Memon, a resident of Baghe Mashira Society, Juhapura, filed a complaint against Arif Shiraz Memon, a resident of Juhapura, Bipin Makwana, Rakesh Patel, Bhavesh Patel, all residents of Vadodara and Yogesh Patel, a resident of Por near Vadodara. As per his complaint lodged on Saturday, Mohammed and his extended family members had invested Rs 34.5 lakh in the schemes floated by Arif and Rakesh's company Ilish Investment having its branches at Iskcon Plaza and Shitiratna Complex in Navrangpura in July 2010.
"Mohammed has mentioned in his complaint that Arif and Rakesh contacted him for his Vadodara connections and had proposed a scheme where he would get fixed monthly returns on his investment. The duo also showed Memon certificates for trading and accepting funds from Reserve Bank of India," said sub-inspector of Navrangpura police station R N Gadhavi. "The certificates later turned out to be forged. After initial returns, the income too stopped. The family had invested in the schemes heavily after selling their properties," Gadhvi added. According to investors, after several Ponzi scams went bust, Memon got worried about his investment and had started inquiring but never got his money back. This is the third Ponzi scam that Navrangpura police are investigating, after receiving complaints of loss totaling over Rs 70 lakh in last six months to investors.