What’s the ₹1,000 crore Torres Ponzi scheme which scammed 3,700? Particulars right here | Newest Information India

Riyaz, who was the fifth particular person to be arrested within the case, was introduced earlier than a Mumbai court docket, which remanded him to police custody till February 3. The arrest comes amid an ongoing investigation into Torres Jewelry’s fraudulent funding scheme, which has left over 3,700 traders with substantial monetary losses.

The investigation

The Torres Ponzi rip-off got here to gentle in December 2024 when lots of of traders gathered on the Torres Vastu Centre in Dadar, Mumbai, after the corporate stopped making promised funds. Traders, who had been inspired to spend money on gold, silver, and moissanite jewelry, had been lured by guarantees of excessive returns, together with vehicles, flats, and reward hampers. Nonetheless, when the corporate did not honor these guarantees, it sparked widespread protests and led to investigations by legislation enforcement companies.

Riyaz had claimed he was the one who tipped off the Enforcement Directorate (ED) concerning the Torres Ponzi scheme, however regardless of these claims, he had been evading arrest for weeks. Authorities had issued a lookout round (LOC) towards him, and he had reportedly traveled from Patna to Mumbai earlier than being tracked down in Lonavala based mostly on a tip-off.

The Enforcement Directorate (ED) on Friday additionally froze greater than ₹21 crore in financial institution deposits as a part of their ongoing investigation into the Torres fraud. The ED carried out raids at 10 places throughout Mumbai and Jaipur on January 23, concentrating on properties linked to the promoters of Torres Jewelry. Investigators have indicated that the Ponzi scheme concerned a fancy community of monetary manipulation and cash laundering.

What’s Torres Ponzi Rip-off?

The Torres Ponzi rip-off, which concerned fraudulent funding ways, has to this point led to a reported ₹57 crore in losses. In keeping with police, the jewelry model used multi-level advertising ways and misleading promoting to draw traders. The corporate’s promoters promised profitable returns however did not ship, leading to widespread monetary destroy for these concerned.

The FIR alleged that the corporate and its promoters “lured” traders with guarantees of excessive returns starting from 2-9 per cent weekly on investments in gold, silver, diamond jewelry, and gem stones.

The schemes additionally supplied bonuses for recruiting new traders, making a referral system to “appeal to” extra victims, the ED stated.

The corporate marketed artificial moissanite stones as high-value investments akin to diamonds, in accordance with the company.

These stones had been bought at inflated costs whereas “deceptive” traders about their future appreciation, it stated.

In keeping with the ED, the corporate organised seminars, marketed on social media and carried out “unlicensed” fortunate attracts to entice prospects with luxurious rewards such ascars and costly cell phones.

Because the investigation continues, authorities are specializing in monitoring down extra suspects and uncovering the total extent of the rip-off. The case has garnered vital consideration, and additional arrests are anticipated within the coming weeks.