Surat, July 5 The cyber crime cell of Surat Police in Gujarat busted a massive international cyber fraud syndicate that lured thousands of investors with false promises of high returns from the stock market.
According to preliminary investigations, the syndicate carried out transactions exceeding Rs 235 crore through bank accounts and around Rs 100 crore through the informal ‘angadia’ network.
DCP Crime Branch Bhavesh Rojiya stated, "This fraud gang used fake companies like 'IV Trade (Innovative Trade)' and 'Sky Growth Wealth Management' to deceive people into investing in the stock market by promising unbelievable monthly returns ranging from 7 pc to 11 pc."
To participate in the scheme, a minimum lock-in period of 18 months was mandatory. The fraud was structured around a Multi-Level Marketing (MLM) pyramid model, where existing investors were incentivised to bring in new investors.
Based on the amount of investment brought in, investors were awarded various "ranks" with lucrative bonuses: Bronze Rank – Investment of US $25,000, Silver Rank US $50,000, Gold Rank US $100,000 and Platinum Rank – US $250,000.
The scheme managed to dupe more than 11,000 investors, most of whom were unaware of the fraud until complaints began surfacing nationwide.
Acting on intelligence, the police conducted raids in Surat and Rajkot, arresting three key accused: Danish alias Hemal Navinchandra Dhanak, Jaysukh Ramjibhai Patolia, and Yashkumar Kalubhai Patolia. Danish is believed to be the mastermind and operated the scam in collaboration with his father Navinbhai and brother Dipen Navinchandra Dhanak.
During the raids, police seized a large cache of incriminating material including company documents, mobile phones, laptops, tablets, routers, diaries, chequebooks, and around Rs 40 lakh in cash.
Further investigation using data from the National Cyber Crime Reporting Portal revealed that complaints against bank accounts used by this syndicate have been filed in 14 states, namely: Bihar, Haryana, Tamil Nadu, West Bengal, Jharkhand, Karnataka, Maharashtra, Telangana, Delhi, Uttar Pradesh, Andhra Pradesh, Kerala, Manipur, and Madhya Pradesh.
DCP Rojiya further revealed, “Some of the main conspirators have fled to Dubai. Our investigation is ongoing, and we are coordinating efforts to bring them back.”
--IANS
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