Firm booked for duping investors of Rs 1.2 cr

MUMBAI: In yet another Ponzi scheme, about 6,000 investors were duped of around Rs 1.20 crore in Mumbai, Karnataka and Uttar Pradesh. There is a possibility of more such cases emerging.
The economic offences wing of the city police has registered a case against managing director of Max Growth Marketing Pvt Ltd Manoj Yadav, directors Ashok Prasad, Ajay Mishra, Dinesh Prasad, Khalil Ahmed.The police are hunting for them.
According to the scheme, on an investment of Rs 1,500, one could earn as much Rs 1.64 lakh. The returns depend on the number of people an investor succeeds in enrolling for the scheme. The scheme consists of 12 levels and the number of investors go up at each level. The company also promised various incentives on membership like wrist watch, saree etc. and car, scooter at the higher levels.
The company began defaulting in paying the returns on the investments in September 2008. However, the investors did not lodge any complaint as the company promised to clear their dues. The company also cited `poor performance' for defaulting on the payments. The company also said that it would be in a better financial position if the existing investors got more people to join the scheme.
The first victim, Mahendra Vishwakarma, joined the scheme through one Surendra Singh Routela, who introduced him to the accused. Most victims are from lower middle class. Mahendra was impressed after Routela took him to the company's offices at Singapore Arcade, Khar (W), Link Sphere Mall, Bandra (W) and Indira Gandhi Co-op Housing Society, Bandra (E).
Mahendra invested Rs 12,000 and got his father and two brothers to invest Rs 36,000. After 2-4 months, the cheques bounced. By then, about 1,000 investors had joined the scheme, bringing the investment to about Rs 15 lakh. In October last year, Ashok and Manoj resigned and warned the investors of physical harm if they persisted in demanding the payment.
In February this year, the company held a meeting of investors and promised to repay. With no sign of repayment, Mahendra lodged a police complaint in October this year. The company has shut its offices.
Ashok Prasad and Dinesh Prasad were also involved in another financial fraud case in 2002. Cases have also been registered in Agra and Varnasi along with Mumbai and Thane.