Investors who deposited money with the fraudulent OneCoin company had been told that they would receive massive returns in December 2018. Investigations have found that the company had no registered office or bank account and the police said all payments were received by the accused in cash.
So far, the police have arrested 18 people after attending a seminar at Jui Nagar on Sunday in which close to 400 people present were told that they could earn huge profits with a one-time investment of Rs 11,900, the police said.
A senior Navi Mumbai police officers said that following the payment, investors were given passwords to access their profiles on the OneCoin website. “On the website, investors could see how many coins they had purchased with their money. The accused had told the investors that the value of the coins would fluctuate according to the value of Euro,” said the officer.
The officer added that investors were also made to believe that the value of the coins would steadily increase as more and more people joined the multi-level marketing scheme. “That way, each investor would bring in their acquaintances into the scheme believing this would increase their returns,” said the officer.
In December 2018, said the police, the investors were to receive their payout. “Until then, the accused told the investors to wait and watch their investment grow steadily on the website. Had we not acted now, there would have been a flood of complaints next year after the investors would have realised that they had been cheated,” said the officer.
The police have booked four other individuals who they believe worked at senior positions in OneCoin. Interrogation of the 18 persons arrested on Sunday has revealed that the money they had collected so far was funneled into bank accounts not registered under OneCoin. “We have found four bank accounts registered under the names of other corporations. The accounts contain large amount of money and we are in the process of freezing them, said an officer.
Investigations have revealed that apart from the investor seminar at Jui Nagar on Sunday, the accused had conducted at least one more such in Navi Mumbai and another one in Thane, the police said.