MLM News

Tag: RBI

  • OneCoin – Ponzi Scheme investigation in India

    OneCoin – Ponzi Scheme investigation in India

    Key Highlights: 

    • Onecoin investigation in India by the EOW
    • Four bank account uncovered  with ₹19 crores and  ₹5 crore approximately

    The Government of Hungary is investigating OneCoin, a cryptocurrency investment scheme as a fraudulent Ponzi Scheme. German Regulators have also ordered OneCoin to ‘Dismantle their Trading System‘

    The Economics Offence Wing investigates OneCoin in India

    In India, the Economics Offence Wing (EOW), has been investigating the OneCoin for running Ponzi scheme. EOW is an extension of India’s Central Bureau of Intelligence (CBI) and India’s prime law enforcement agency.

    Last month, 18 promoters of Onecoin held a recruitment seminar in Navi Mumbai.The Mumbai police attended the entire seminar unknown to the organisers posed as prospect investors and heard the whole presentation.

    The company offered investment packages starting from ₹11,900 to ₹27 lakh. The investments were towards purchasing token ultimately used to redeem Onecoin. They were also told that they could check their profile in OneCoin website with the password credentials provided after investment.

    76 people invested around ₹ 56 lakh after attending a previous seminar. As per the Mumbai police, OneCoin is not registered with the RBI. They confirmed that Onecoin does not have the appropriate license for running such financial schemes with an assurance of high returns.

    RBI cautions users of Virtual Currencies against Risks

    The police immediately arrested the organisers and the police have been investigating further to track the mastermind behind this scheme. As per Hemant Nagrale, Police Commissioner Mumbai, the accused were running this scheme in Navi Mumbai, Thane and other parts of Maharashtra

    This month in May, the EOW, arrested Nayan Patel 28 and Amit Kedia, 32 in connection to OneCoin scam.

    The EOW become involved in the investigation last month. It had formed a special investigation team consisting of 15 personnel and four officers.

    Patel had earlier absconded, leaving India and travelled to Hong Kong from Dubai. Mumbai Police caught him at Mumbai International Airport while trying to return to India.

    Four Bank Accounts Frozen After Investigation

    The investigation from last month’s arrest of 18 people had led the EOW to four bank accounts. Two of these bank account named Premium Payment Solution. One of the bank accounts held ₹19 crores (approx. $3 million). Other account had ₹5 crore. The authority has now seized both these accounts.

    As per the EOW’s investigation, two individuals, in particular, Mary Beyance from Mauritius and Ereena Andreva Belkinska from Bulgaria are the main perpetrators of the OneCoin scheme. Further investigation is being done in this regards.

    EOW has arrested 20 people in association with the OneCoin’s operation in India. However, the investigation still continues.

    No “official” statement released by Ruja Ignatova – CEO, OneCoin.

    Related:

  • Alert issued against ponzi mlm schemes by Reserve Bank Of India

    Alert issued against ponzi mlm schemes by Reserve Bank Of India

    #RBI #MLMScam #PonziScheme

    Lots of fly by night ponzi mlm schemes have duped millions of investors in India. On Thursday Reserve Bank of India notified investors against MLM companies that promise high returns and run on hefty member subscription fees.

    Any break in the chain leads to the collapse of the pyramid, and the members lower down in the pyramid are the ones that are affected the most,” the Reserve Bank of India said in a circular on Thursday.

    Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant’s “downline”, and can provide multiple levels of compensation.

    source: indiainfoline

     

     

  • A bag mixed with some good and bad news for Speak Asians.

    Recent development on Speak Asia has given a mixed response to its panelist.

    The Ministry of Corporate Affairs today said it could not investigate alleged irregularities in multi-level marketing company Speak Asia as the company is not registered with it. Same was communicated to journalist by Reserve Bank of India.

    “Speak Asia is not registered in India so we cannot do any investigation against it. MCA does not have any database of the company,” Corporate Affairs Secretary D K Mittal told reporters on the sidelines of an AIMA event here. (more…)

  • RBI Notification on Forex Trading

    This is the press release from Reserve Bank Of India, in this press release RBI has warned people who are involved in Overseas and domestic Forex Trading. RBI has stated that under Foreign Exchange Management Act, FEMA, 1999 do not permit residents of India to trade in foreign exchange in domestic/overseas markets. (more…)

  • Beware of these MLM companies

    Hemant Kumar Rout, TNN 5 August 2009, 10:47pm IST| BALASORE: The state Crime Branch on Wednesday claimed to have busted a multi-crore scam involving fake marketing companies and chit funds. Police said they have frozen bank accounts worth Rs 107 crore and arrested one person in this connection.SP (Crime Branch) Santosh Bala said sleuths from the department had arrested Saroj Kumar Samanta (30) from Akandi in Balasore district’s Singla police station area on Tuesday. “Samanta had been running a fake company, Dream Achiever, since April 14 by hosting a website www.dreamachiever.in . Though he was operating the company from Balasore, he had given a Delhi address,” the SP said. DSP (Crime Branch) Pramod Kumar Panda, who led the investigation, said Dream Achiever duped public by promising them to triple their money within a year. The trick had worked and around Rs 4.46 crore was deposited into the accounts of Dream Achiever within a short span of time. “The scheme came with offers for prospective investors , who were promised special discounts for introducing two other depositors,” Panda said. The Crime Branch investigation came in the wake of several complaints lodged with Balasore police by money losers. After a preliminary investigation, SP (Balasore) Rekha Lohani had handed the case over to Crime Branch. “As many as six cases have been registered in this connection. We are also inquiring into the involvement of banks in the racket without whose help such companies can’t flourish. Besides, efforts are on to nab the promoters of other such organizations,” the officer said. The Crime Branch has so far zeroed in on as many as seven such fake companies and chit fund organizations, which had been duping people by using accounts in reputed banks such as ICICI Bank, Axis Bank, IDBI Bank and SBI. Officers said a total amount of Rs 107 crore have been frozen in 11 accounts held in branches of the banks in several cities, including Bhubaneswar, Balasore, Kanpur, Delhi and Mumbai. “The companies whose accounts have been frozen include Trident Advertising & Trade Link Pvt Ltd, Fine Indisales Pvt Ltd, Eve Industries, Lakshya Level Marketing Pvt Ltd, Lui Brail Educational Society, Many Mantra Marketing Services Pvt Ltd and Dream Achiever,” Panda said. “Apart from these seven, many such companies are operating in and outside Orissa and the total money involved in the racket will be more than Rs 1,000 crore. Orissa’s share will not be less than Rs 150 crore,” he added. Recently, the Reserve Bank of India had warned all nationalized and private banks not to have accounts of as many as 10 such companies, including six that are already under the Crime Branch scanner. The other four are Alaska India, Superlife Linked Distributors, Star Consultancy Pvt Ltd and Seashore Funds Management Pvt Ltd. An RBI memorandum on July 11 had advised not to allow these 10 companies and organisations to open accounts with them. “These MMCs are opening accounts without complying with Know-Your-Customer (KYC) norms and Anti-Money Laundering (AML) Act. Innocent people are being trapped by fraudulent schemes launched by such unscrupulous persons and companies,” the memorandum read.

    To Your Success in Business & Health in Life,

     Ak Sharma
    Editor,
    You can reach me at [email protected] or connect with me on Facebook

  • RBI flashes red signal at MLM companies

    RBI Website

    Mumbai: The operations of shady multi-level marketing (MLM) companies — which operate what are popularly known as pyramid or ponzi schemes — have come under the regulatory scanner with shady MLM companies mushrooming across the country and duping investors. Many firms posing as MLM agencies for consumer goods and services have been actually mobilising large amounts of deposits from the public with promises of ridiculous returns of 120 per cent and repayment of prinicipal within a year.

    In a circular, the Reserve Bank of India has alerted banks that in cases where accounts have already been opened in the names of the marketing agencies, retail traders and investment firms, the banks should undertake quick reviews. “Wherever large number of cheque books has been issued to such firms, the relative decision may be reviewed,” it said.

    With many MLM companies recently using the banking technology to dupe investors, the RBI said, “banks should be careful in opening accounts of the marketing/trading agencies etc. Especially, strict compliance with KYC (know your customer) and AML (anti-money laundering) guidelines issued by the RBI should be ensured in the matter.”

    The banking regulator also named seven MLM companies (Fine India Sales Pvt Ltd, Lakshya Levels Marketing, Eve Industries, Trident Advertising & Trade Links Pvt. Ltd, Super Life Link Distributors, Lue Brain Education Society and Manya Mantra Marketing). “These firms and their agents had reportedly promised very high returns on deposits and lured common people to part with funds in the name of certain investment/deposit schemes,” the RBI said.

    ASKS BANKS TO TIGHTEN FRAUD RISK MANAGEMENT

    MUMBAI: The Reserve Bank of India has asked banks to tighten the internal policy for fraud risk management and fraud investigation function as the incidence of frauds in Indian banks has been showing an increasing trend, especially in housing and mortgage loans, credit card dues and internet banking. “It is a matter of concern that instances of frauds in the traditional areas of banking such as cash credit, export finance, guarantees, letters of credit etc remain unabated,” the RBI said a year after the surfacing of the global financial crisis. http://www.rbi.org.in/sc ripts/NotificationUser.a spx?Id=5271&Mode=0