Quick Overview
A significant financial fraud has come to light in Mumbai, where the Torres jewelry store chain, operated by Platinum Hern Pvt Ltd, allegedly defrauded 1.25 lakh investors of over Rs 1,000 crore through a well-organized Ponzi scheme. They offered an enticing 11.5% weekly interest for cash investments, 2% for Gold, & 3% for Silver. The scheme, masterminded by founders John Carter and Victoria Kowlenko, attracted investors with promises of high returns on cash investments. As the investigation unfolds, police have arrested several key figures involved in the operation and are working to recover the lost funds.
Key Points
- Massive Fraud Operation: The Torres Ponzi scheme defrauded approximately 1.25 lakh investors, amounting to over Rs 1,000 crore.
- Lack of Regulatory Approval: The company operated without any permission from the Reserve Bank of India (RBI) or other government bodies to accept investments.
- Arrests and Investigations: Three senior officials have been arrested, while the masterminds are believed to have fled the country.
- Promised High Returns: The scheme offered unrealistic returns on investments, attracting many individuals who invested large sums of money.
- Staged Robbery: The company attempted to stage a robbery to cover up their fraudulent activities as they prepared to flee.
Detailed Breakdown
Background of the Scheme
The Torres Ponzi scheme was launched in February 2023, targeting the Mumbai Metropolitan Region (MMR) through six showrooms. The company offered various investment schemes with promises of high returns, which lured many investors. The founders, John Carter and Victoria Kowlenko, are suspected to be Ukrainian nationals who have reportedly fled the country.
Operations and Marketing Tactics
The scheme was heavily marketed through large seminars across the city. Investors were promised lucrative returns on investments in gold, silver, and Moissanite stones. The schemes included:
- Gold Investments: 2% weekly interest
- Silver Investments: 3% weekly interest
- Moissanite Stones in Silver: 4% weekly interest
- Direct Moissanite Investments: 5-6% weekly interest
Additionally, the company offered an enticing 11.5% weekly interest for cash investments and a 20% referral bonus for bringing in new investors. This aggressive marketing strategy built trust among investors, leading them to make substantial cash investments.
Arrests and Legal Proceedings
On January 9, 2024, Mumbai police arrested three senior officials of the company: Taniya Xasatova, Sarvesh Surve, and Valentina Ganesh Kumar. The police have stated that the company had no legal authority to accept investments, characterizing their operations as a well-planned financial crime. The arrested individuals are currently in police custody, with the investigation being transferred to the Economic Offences Wing (EOW) for a more thorough inquiry.
Victim Experiences
Victims of the scheme have shared harrowing stories of their losses. Many individuals, including families and small business owners, invested their life savings, took loans, or mortgaged their assets based on the promised returns. For example:
- Kalpana Kadam lost Rs 43 lakh, having broken fixed deposits and mortgaged jewelry to invest.
- Devndera Singh mortgaged his wife’s jewelry to invest Rs 3.5 lakh.
- Shailaja Shinde expressed despair, stating that the situation had driven her to contemplate suicide.
The emotional toll on these investors is severe, as many have lost not only their savings but also their sense of security.
Investigative Developments
The police have reported that the company had plans to close all branches and escape by January 1, 2024. They staged a robbery at their Dadar store to distract from their fraudulent activities, but their plan unraveled due to investor protests. The police have since seized nearly Rs 28 lakh in cash and frozen around Rs 4 crore in bank accounts linked to the company.
Recovery Efforts
Authorities are now focused on identifying the company’s assets to recover the lost funds for investors. The police have included 61 investors in the FIR, claiming losses of Rs 13.48 crore. However, many victims remain skeptical about the chances of recovering their investments.
Torres Ponzi scheme:Important Details & Evidence including company Structure, Investor Manipulation, & Planned Exit
- Company Structure: The company operated under various names and had a façade of legitimacy, with flashy showrooms and marketing events.
- Investor Manipulation: The scheme relied on creating a sense of urgency and trust among investors, often using testimonials and referrals to encourage more investments.
- Planned Exit: Evidence suggests that the company had a premeditated plan to wind down operations and escape before the scheme was uncovered.
Final Takeaways
The Torres Ponzi scheme serves as a stark reminder of the potential risks associated with high-return investment schemes that lack regulatory oversight. The case highlights the need for greater investor awareness and the importance of verifying the legitimacy of financial opportunities. As investigations continue, the plight of the affected investors underscores the devastating impact of financial fraud, leaving many to grapple with significant losses and emotional distress. The authorities’ proactive response in arresting key figures and investigating the fraud is crucial in restoring some measure of justice for the victims.
