Bangalore: Three arrested for executing the Ponzi scheme; collected Rs 77 crore in 4 years

BENGALURU: Tilaknagar has arrested three people accused of carrying a Ponzi through which they had collected around Rs 77 crore from more than 2,000 clients in the last four years.

Those arrested are Manjunath, 31, of Vishveshwaraiah Layout in Devarachikkanahalli, and Habibulla Shareef, 37, and Masiullah Shareef, 32, of Doddakammanahalli. Police said the defendant ran a company called Tiforp Trading Services Pvt Ltd in the ninth block since 2015 and promised a monthly return of about 10 percent of the investments.

They held events in Jayanagar and its surroundings and promoted its scheme on Facebook and other social media platforms to attract customers. For a few months, investors obtained the promised interest, but subsequently stopped.

The problems began in November 2018 after the company stopped giving interest to investors. Although people made several rounds to the company, the owners did not keep their word and, instead, asked customers not to approach the police. In May 2019, after the I Monetary Advisor (IMA) scam appeared in the headlines, the trio closed the company and fled. Investors then formed a group and began negotiating with the owners of the company. When that did not yield any results, they began filing police complaints on January 14 onwards.

Police said the defendant led a luxurious life, which included trips abroad. A BMW car, Hyundai Tucson, Toyota Innova and two motorcycles were seized from the trio, which have real estate worth more than three million rupees.

Sources said the defendant raised money claiming they were in real estate and foreign exchange. Efforts are being made to locate others involved in the scam who fled with the money.