Ponzi scam surfaces

VISAKHAPATNAM: Two Town police registered a case on Sunday against a woman and her nephew on charges of siphoning off money under the garb of running a chit fund in the city. Sources said the extent of the fraud is yet to be ascertained though victims claim that the duo have fled with nearly Rs 3 crore. Two Town inspector GV Ramana said the accused have been identified as A Varalakshmi and her nephew Satish Kumar. The woman is the wife of a constable in the central excise department. The duo had floated illegal chit funds and collected between Rs 2 lakh and Rs 3 lakh from each of the depositors. Both are missing since the last three months and nearly 10 victims have filed complaints against them. Varalakshmi’s husband has claimed innocence. tnn