Friday, September 30, 2011

Sapphire Investment Solutions (SIS), an investment firm fraud scam

After SpeakAsia, another investment scam unearthed

After the city police unearthed the alleged multi-crore fraud case involving investment firm SpeakAsia, many more such companies are now coming under the scanner of the Economic Offences Wing (EOW). EOW officials on Thursday arrested a science graduate for allegedly running a dubious money doubling scheme. The accused has allegedly cheated several people of crores of rupees.
The accused has been identified as Rajesh Rambali Singh, 28, a resident of Sanjan village near Valsad in Gujarat. Singh was picked up from his rental accommodation in Mumbai Central.
EOW sources said that Singh had set up Sapphire Investment Solutions (SIS), an investment firm with an office at Laxmi Industrial Estate in Andheri (W), in 2010. Singh used to conduct seminars in Mumbai and Thane to sell the scheme.
"Singh used to promise a monthly return of 16% on an investment of Rs1 lakh. He used to lure prospective investors by explaining to them how he would do that: Reinvest that amount in stock and commodity markets from where the total return would be 20%. Out of that 20% return, the investor would get 16% (Rs16,000) and the remaining 4% would be his company's administrative fees. Rs16,000 every month from an investment of Rs1 lakh was quite an allurement," said an EOW officer, explaining Singh's modus operandi.
He added that once few people invested their money, Singh initially made genuine payments to the investors to gain their trust.
The police attributed the success of having unearthed this case to the SpeakAsia investigations. "After the SpeakAsia case was unearthed, people were suspicious about investing their money in such schemes. This resulted in less inflow of money into Singh's business, after which he started defaulting in making payments and his post-dated cheques started bouncing. Disgruntled investors approached the police and lodged a complaint against Singh," said the officer.
"We have Singh in police custody and are investigating his bank balance and property details and if more persons are involved along with him in this business. We suspect this to be a multi-crore fraud," the officer said.

No comments:

Post a Comment

Search here anything you like