Category: Investment Scam

QZ Asset Management Executes Full Exit Scam; Website Unreachable

The QZ Asset Management website has recently been taken offline, signaling the downfall of the notorious “SEC audit” exit scam perpetrated by this Ponzi scheme. Additionally, the social media accounts associated with QZ Asset Management have been removed from public view.

QZ Asset Management emerged onto the scene in late 2022, enticing investors with promises of a remarkable 400% return on investment through its MLM crypto Ponzi scheme. The primary target market for QZ Asset Management and its promoters appeared to be investors in Africa, while the alleged masterminds behind the operation were believed to be Chinese scammers operating out of Hong Kong

The scheme’s exit hoax gained momentum with the fraudulent announcement of a NASDAQ listing in late March, misleading investors further. Subsequently, on May 1st, QZ Asset Management abruptly halted withdrawals, intensifying concerns about the legitimacy of the operation.

CEO Blake Yeung Pu Lei attempted to placate investors by attributing the disruption to an upcoming SEC audit, a claim that held no merit since the SEC does not conduct audits of private corporations outside of regulatory enforcement proceedings.

Amidst the dissemination of misinformation regarding the false NASDAQ listing by prominent promoters, QZ Asset Management has been strategically distancing itself from its victims in Africa over the past few weeks.

Now, all of these deceptive tactics have come to a screeching halt. QZ Asset Management has taken down its website and removed its previously accessible YouTube and Facebook accounts. While the Twitter profile for QZ Asset Management remains active, the account vanished back in February.

Considering the distribution of cryptocurrency to offshore criminals and the unlikelihood of regulatory action from China, it seems improbable that QZ Asset Management will face consequences in that jurisdiction. Furthermore, African authorities may find themselves powerless to take any significant action in this matter.

The precise number of victims affected by QZ Asset Management and the extent of their financial losses remain uncertain at present, pending unlikely updates in the future.
IIT Kanpur Student and 5 Others Arrested in Thane for Cryptocurrency Fraud
In a recent development, authorities have successfully apprehended six individuals, including a student from the esteemed Indian Institute of Technology (IIT) Kanpur, for their alleged involvement in a significant cryptocurrency fraud case in Thane. The arrest marks a noteworthy milestone in the ongoing efforts to combat fraudulent activities within the cryptocurrency domain. This article aims to provide a comprehensive overview of the incident, shedding light on the individuals involved, the modus operandi employed, and the potential implications of such fraudulent practices.
1. Background: Cryptocurrencies have gained significant popularity in recent years, serving as a decentralized and secure medium of digital transactions. However, with their rapid growth and limited regulations, instances of fraud and illicit activities within the cryptocurrency space have also emerged. The present case highlights the need for stricter vigilance and regulatory measures to curb such fraudulent practices.
2. The Incident: On a recent day, a team comprising law enforcement authorities and cybercrime specialists apprehended six individuals suspected of orchestrating a cryptocurrency fraud operation. Notably, one of the arrested individuals is a student enrolled at IIT Kanpur, a prestigious educational institution renowned for its academic excellence.
3. Individuals Involved: Among the detained individuals, a prominent figure is the IIT Kanpur student, whose name is withheld due to legal constraints. The other arrestees, whose identities were also not disclosed, are believed to have played crucial roles in facilitating the fraudulent activities.
4. Modus Operandi: According to preliminary investigations, the suspects allegedly devised a sophisticated scheme that involved luring unsuspecting victims into investing in a fictitious cryptocurrency venture. The perpetrators purportedly promised high returns and encouraged potential investors to transfer significant amounts of money to their accounts. To give an illusion of legitimacy, they employed deceptive marketing strategies and created a fraudulent online platform.
5. Investigation and Collaboration: Law enforcement agencies, supported by cybercrime experts, conducted a thorough investigation into the fraudulent activities. They analyzed financial transactions, digital footprints, and other pertinent evidence to identify the culprits and establish their involvement. The successful collaboration between authorities, educational institutions, and cybersecurity professionals underscores the significance of collective efforts in combating cybercrimes.
6. Legal Implications: The apprehended individuals now face serious legal consequences, as their actions violate multiple laws, including those pertaining to fraud, financial misappropriation, and cybercrime. Such cases serve as a stern reminder that law enforcement agencies are actively engaged in countering illicit activities in the cryptocurrency domain.
7. Lessons Learned: The incident emphasizes the importance of raising awareness among potential investors about the risks associated with cryptocurrency investments. It also underscores the necessity for stringent regulations and preventive measures to safeguard individuals from falling victim to fraudulent schemes.
Conclusion: The arrest of six individuals, including an IIT Kanpur student, in connection with a cryptocurrency fraud case in Thane, represents a significant milestone in the fight against fraudulent activities within the cryptocurrency domain. This incident highlights the need for continuous efforts to strengthen regulations, enhance cybersecurity measures, and educate individuals about the risks associated with cryptocurrency investments. By promoting a collaborative approach among law enforcement agencies, educational institutions, and cybersecurity experts, society can work towards safeguarding individuals and fostering trust in the evolving landscape of digital transactions.
Co-founder of $4B OneCoin fraud scheme pleads guilty and faces up to 60 years in jail

The co-founder of OneCoin, a fraudulent cryptocurrency scheme, has admitted guilt to several charges brought by the US Department of Justice (DOJ) and now faces up to 60 years in prison. Karl Sebastian Greenwood pleaded guilty to counts of wire fraud, conspiracy to commit wire fraud, and conspiracy to launder money, each of which carries a maximum potential sentence of 20 years in prison.

OneCoin was promoted as a “Bitcoin killer” by Greenwood and his business partner, Ruja Ignatova, but the tokens were actually “totally worthless” and part of “one of the greatest international fraud schemes ever committed”, according to U.S. Attorney Damian Williams. The company, based in Bulgaria, was actually a pyramid and Ponzi scheme, in which participants could bring others into the plan without a tangible product and later participants were compensated with funds from earlier participants. It presented itself as a multi-level marketing company, with members earning commissions for the sale of cryptocurrency packages that purportedly included OneCoin and the opportunity to mine additional coins. However, OneCoin could only be converted into fiat money on the exclusive Xcoinx exchange.

As the “global master distributor” of the fake company, Greenwood reportedly made about $21.2 million per month. Three million customers who bought the packages and invested over $4 billion are thought to have been duped by OneCoin. Ignatova, who is still at large and was last seen leaving for Athens, Greece in October 2017, was added to the FBI’s top ten most wanted list in June due to her involvement in the conspiracy.

Williams stated that Greenwood’s plea “sends a strong message” that the DOJ is “going after all those who want to exploit the Bitcoin environment through fraud.” Three associates are accused of fraud and money laundering in Germany, and other authorities have filed charges against people connected to OneCoin and Ignatova.
Ranga Reddy: Multi-level marketing fraudsters loot 15 lakh from woman

Cyberabad police on Wednesday cautioned that the Multi-Level Marketing (MLM) fraudsters back in the market with new modus operandi.
Owing to the easy trap methods into Multi-level marketing frauds, the fraudsters have always returned to trap vulnerable people.

The most important fact about this fraud system is the new techniques adopted by the fraudsters to get into the minds of their probable victims. Trust and vulnerability plays important factors in becoming victims to such traps, a police statement here said.

However, from time to time the Cyberabad police have been issuing warnings to all the people especially housewives, young women and unemployed youth about the fraud system.

In yet another case of MLM fraud system, the Miyapur police had arrested a gang of four people in this connection. The accused were identified as Subodh, Deekshit, Uday Jeevan and Rahul Malani

Suboth the mastermind of the game plan used to lure people of high returns on particular business investment and when their probable victim would invest in their fake scheme, they used to harass the victim to make others join the scheme and once they are completely trapped into the system they used to exploit the women sexually and in various other means.

In this way, they had extracted an amount of Rs 15 lakhs from a woman and had harassed her in all possible ways. All four suspects were arrested and remanded in judicial custody.

Cyberabad police hereby warn people to stay away from such fake schemes, as money does not come for free.

We request the common people to get in touch with us on the number 9490617444 through call or WhatsApp if they find themselves caught in such fraud systems. Apart from this, one can also dial 100 to register a complaint with the local police station.
Enforcement Directorate (ED) attaches assets of ‘bike bot’ MLM Ponzi Company worth 103 crores
- Bike Bot taxi service MLM Company is accused of duping about ₹3,000- ₹4,000 crores from 2.25 lakh investors
The Enforcement Directorate (ED) on Monday issued an order to attach ₹103 crores moveable and immovable assets belonging to the Noida ‘bikebot‘ Ponzi scheme.

There are 26 immovable properties with net worth ₹101.45 crores, and bank balance of ₹2.28 crore in 22 accounts. The case is being probed under the Prevention of Money Laundering Act (PMLA).

The Greater Noida-headquartered Bike Bot taxi service is accused of duping about ₹3,000- ₹4,000 crores from 2.25 lakh investors in multiple states including Uttar Pradesh, Madhya Pradesh, Rajasthan and Haryana.

ED Joint Director (Lucknow zone) Rajeshwar Singh said: “Further investigation against certain officials and beneficiaries is continuing and more attachments will be done in this case shortly,”.

The ED had booked the company that ran the alleged Ponzi scheme — Garvit innovative Promoters Ltd (GIPL) — and its promoter Sanjay Bhati and others under the PMLA in June last year after going through multiple FIRs filed against them by the Noida police.

As per the ED, the company and its promoters had “floated highly lucrative investment plans in the guise of a bike taxi service in the name of ‘bike bot’ where a customer could invest in 1, 3, 5 or 7 bikes which would be maintained and operated by the company and the investor would be paid monthly rent, EMI and bonuses (in case of investment in multiple bikes) and further incentives on adding additional investors in a binary or multi-level marketing structure.”

“The company allotted franchises in various cities but the bike taxi hardly operated in these cities. The plans were floated in August 2017 and the collection of money from investors or customers and repayments to them continued till early 2019.”

“In November 2018, the company floated similar plans for e-bikes stating that the petrol bikes were facing issues regarding registration and operation,” it said.

The funds so collected have been used for repayment to the earlier investors similar to that in a ponzi scheme, the ED alleged.

It alleged that the promoters indulged in acquisition of other companies, purchase of a resort in Kullu (Himachal Pradesh) for creation of various immovable and movable assets in the name of various companies and also transferred funds to various other companies and individuals as loans and investments without proper documentation.

The agency had also recorded statements of Sanjay Bhati and others who were arrested in the case.

It had conducted raids in this case in February and surveyed a co-operative bank in Noida which “revealed several suspicious transactions and the role of the banking officials in aiding and abetting the accused in the laundering of the public money.”

At least 19 immovable properties located in Gautam Buddh Nagar, Ghaziabad, Bulandshahar, Kanpur and Indore in the name of the company have been identified by the agency.

“Seven other properties in the name of third parties have also been ascertained and verified,” the ED said.
ED Files Prosecution Complaint In MLM, Ponzi Scheme Case Against Gold Sukh

The Enforcement Directorate has filed a prosecution complaint under the Prevention of Money Laundering Act, 2002 (PMLA) before the court of Special Judge (PMLA), Jaipur in an MLM/Network Marketing and Ponzi scheme case.

The prosecution complaint has been filed against 12 accused – Gold Sukh Trade India Ltd, its sister concern Gold Sukh Corporation Ltd, Jaipur, its Directors namely Mahendra Kumar Nirwan, Manvendra Pratap Singh Chauhan, Pramod alias Bablu Sharma along with their other family members and shareholders, among others, read a statement.

Mahendra Kumar Nirwan, Manvendra Pratap Singh Chauhan, Bablu Sharma

A company called Gold Sukh has allegedly swindled over 1.75 lakh investors of crores of rupees and shut shop all of a sudden. The company that operated out of Jaipur had promised a 150 per cent increase in investments in 18 months.

The ED took up the investigation under PMLA on the basis of nine FIRs registered by the Vidhyakpuri Police Station, Jaipur against Gold Sukh Trade India Ltd, Jaipur, its Directors, shareholder and team leader for mobilising public deposits during the period from 2008-09 to 2010-11.

The state police have filed charge-sheets and supplementary charge-sheets against the accused persons under the Indian Penal Code (IPC) and Prize Chit and Money Circulation Scheme (Banning) Act, 1978.

During investigation under PMLA, proceeds of crime amounting to Rs 3.06 crore, in the form of movable and immovable properties were attached, which was subsequently confirmed by the Adjudicating Authority (PMLA), New Delhi, the statement added.

The prosecution complaint has been filed on the basis of the outcome of investigation and attachment of proceeds of crime from these persons, found acquired out of offences scheduled to PMLA. Confiscation of attached properties valuing Rs 3.06 crore has also been prayed in the complaint in terms of section 8 (5) of PMLA, 2002 apart from prayer for punishing the accused in terms of section-4 of PMLA.

Further investigation in the matter is in process
MLM Company Owner Arrested for GST Theft of Rs 70 crore

The Central Goods and Services Tax (CGST), Vadodara, officials have arrested a businessman named Dilip Jain for evading Rs 70 Cr of GST/CE by providing other financial services through four unregistered entities under GST.

The businessman Dilip Jain was arrested after GST investigations revealed that he hadn’t registered with the GST department and avoided paying taxes on the financial services he offered. The senior officers also said that Dilip Jain offered financial services and ran multi-level marketing company.

He used to charges Rs 8,500 from those who joined his firm and gave a fixed return as commission to the member.

The investigating officers said that “All the services Jain offered come under GST purview. But he didn’t have GST registration and he never paid taxes and also investigations revealed that he avoided paying GST approximate of Rs 70 crore. This is just an initial amount that may go up in the coming days,”
3000 crores cheated from 1.75 lakh investors, ED raids 12 locations of bike boat company

On Saturday, the Enforcement Directorate raided 12 locations in Lucknow, Delhi and Noida of the Bike Boat Taxi Company. The company defrauded millions of investors by running a bike taxi service on the lines of Ola and Uber.

During the raid, many important documents linking the company to money laundering were found. The Bike Boat Taxi Company collected close to INR 3000 crores by duping almost 1.75 lakh investors with false promises of huge profits. FIRs against the Bike Boat Taxi Company are lodged in Noida, Lucknow and Aliganj.

According to the ED, on Saturday, different teams raided six locations, including Vijay Khand, Rajajipuram and Para of Gomtinagar in the Bike Boat Lucknow. Apart from this, documents were also scrutinized at four places in Noida and two in Delhi.

ED teams raided locations of Pantal Technology, Pimex Plastics, Pimex Broadcast and Prerna Services. Earlier these companies belonged to Vijinder Singh alias Vijinder Hooda. Later, Sanjay Bhati, former BSP leader bought these companies. Sanjay became the Director of the Bike Boat Company. He raised the amount deposited by investors through these companies. Apart from this, ED also searched Mars Group, Accord Hydraulics, Bhasin Infotech, Nobel Buildtech. These offices were associated with The Bike Boat Company.

The ED raided two more companies – Proud Innovative Promoters and Proud Automotive, associated with Sanjay Bhati.

The ED also scrutinized documents of the associated channel about Sanjay Bhati’s stake in the channel.

The money collected from 1.75 investors was further invested in bogus loans, fake companies and trusts. By paying some commission to these funds, the operators withdrew themselves from other sources. Sanjay turned the black money into white through these fake companies. He formed many shell companies and invested investors’ money through them
The ED has traced this money trail associated with the company. Now with this, the ED will tighten its grip on the other people involved in the hawala racket. According to the investigation, Sanjay bought properties in his and his family’s name with the money from the Ponzi scheme.
500 CR Webwork Scam: Shah Rukh, Nawazuddin Under CBI Scanner

The FIR registered against the Webwork on Tuesday by the CBI does not mention Shah Rukh or Nawazuddin as either accused or suspects.

The CBI has taken over the probe into the Rs 500 cr online cash-for-click scam.

The online ponzi scam, to be investigated by the CBI, was being run from UP’s Ghaziabad district by Webwork Trade Links Pvt Ltd.

The complaint has also mentioned the names of Bollywood stars Shah Rukh Khan and Nawazuddin Siddiqui, who had endorsed the Webwork’s shadow company Addsbook.com in 2016.

Addsbook.com was launched on December 10, 2016.

The FIR registered against the Webwork on Tuesday by the CBI does not mention Shah Rukh or Nawazuddin as either accused or suspects.

However, the CBI may seek a clarification from the actors, as reported by the First Post.

The CBI has taken over the probe into its hands from the UP police which was initially investigating the matter.

The UP police had registered a case against the promoters of Addsbook.com namely Anurag Garg and Sandesh Verma, who are accused of duping thousands of investors using the two Bollywood actors as brand ambassadors.

The complaint, which is now part of the CBI FIR, holds both the Bollywood stars equally responsible for the fraud the company has committed.

According to it, after seeing Shah Rukh and Nawazuddin as brand ambassadors of the Addsbook.com, people believed in the online ponzi scheme and made heavy investments only to be duped later.
New Zealand national, three associates arrested in fraud case

#MLMNews #NetworkMmarketingFraud #MohammedKhurram #KiranModi #HiteshModi

The Central Crime Branch (CCB) sleuths busted a network marketing fraud with the arrest of four persons including a 52-year-old woman from New Zealand for allegedly duping people on the pretext of offering them memberships in a networking company.

Based on a tip-off, a team of sleuths approached the company executives holding a seminar at Hotel Capitol on Rajbhavan Road and arrested the accused.

The accused have been identified as Denise, a New Zealand national who heads the fraud company and her associates Mohammed Khurram (44), Kiran Modi (39) and Hitesh Modi (42) from Bengaluru.

Joint Commissioner of Police, Hemanth Nimbalkar who led the raid, said that the company under the banner “YOBSN SOCIAL MEDIA NETWORK MLM” was being run through a website www.socialmediatechnologies.com. The accused conducted seminars and power point presentations across the country to lure people by offering them money in US dollars.

Police said that anyone could become a member of the network by paying Rs. 8,000 to Rs. 25,000 according to their capacity following which the member will have to introduce two persons (Left & Right member) to invest. The member gets a 25 per cent bonus as commission.

CCB investigated the documents available with the accused persons and found that the accused Denise had introduced more than 31,000 members from across the globe and had collected Rs. 50 crore worth enrolment fee.

Denise’s members included 2,000 from US, 1,700 from India, 28,000 from Malaysia, 500 from New Zealand, 200 from Dubai, and 100 from Pakistan. Her members in India include 300 from Karnataka, 800 from Maharashtra, 100 from Delhi, 100 from Punjab, 300 from MP, 100 from Hyderabad.

Mohammed Khurram also has 2,000 members in his tree and claims to have received $10,000 as commission.

The CCB has filed an FIR against the accused in Cubbon Park Police station and booked them under section 3, 4, 5 of Prize Chits and Money Circulation Scheme (ban) Act and section 420 IPC.

Mr. Nimbalkar said that action would be initiated against the hotel for not informing about the event to the police which amounts to abetting the accused.

– the hindu

Category: Investment Scam

The FIR registered against the Webwork on Tuesday by the CBI does not mention Shah Rukh or Nawazuddin as either accused or suspects.