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‘Double your money’ fraud: EoW moves against firm

The Economic Offences Wing (EOW) has registered a complaint against a fraudulent multi-level marketing firm that promised investors double returns over two months.


December 28, 2009 3:47:20 am

The Economic Offences Wing (EOW) has registered a complaint against a fraudulent multi-level marketing (MLM) firm that promised investors double returns over two months. The wing arrested the kingpin — Digamber Patil,40 — on December 23 for cheating at least 17,000 investors. The fraud is estimated to be over Rs 22 crore.

According to the wing’s senior officials,the MLM schemes involve big networks with many people involved in the sales and many databases used. This fraud was made under an unregistered company Avishkar. Digamber Patil,through his 350 agents,made promises of returning double the money within less than two months.

Over 17,000 investors were pulled in between August and November — with an estimate of Rs 5 crore collected in August itself. While Patil did pay the investors who joined in August,he did not do the same with those who joined it from September. The officers probing the matter have found that the agents duped customers with various schemes with the same promise but with different names. Incidentally,Digamber was earlier an agent with another firm that was being probed by the police on similar charges,with the promoter still absconding.

The police said the scope of the racket could widen as they expect to find more duped investors.

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First published on: 28-12-2009 at 03:47:20 am

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