City Limouzine Investment finance fraud

Damian Williams, the top federal prosecutor in Manhattan, speaks at a press conference to announce the addition of “Cryptoqueen” Ruja Ignatova to the FBI’s most-wanted fugitives list, in New York, June 30, 2022.

Karl Greenwood, one of the co-founders of the fraudulent cryptocurrency OneCoin, has been sentenced to 20 years in prison, while his partner, Ruja Ignatova, known as the "Cryptoqueen" and on the FBI's Top 10 Most Wanted list, remains at large. Here are the key points:

1. Karl Greenwood, 46, was responsible for orchestrating the massive pyramid scheme behind OneCoin, which fraudulently amassed over $4 billion from millions of investors worldwide. He pleaded guilty in December to wire fraud and money laundering charges.

2. His partner, Ruja Ignatova, 43, remains a fugitive and is sought by law enforcement agencies. Ignatova's alias as the "Cryptoqueen" highlights her prominent role in the scheme.

3. The fraudulent scheme, OneCoin, operated between 2014 and 2016 and originated in Bulgaria. It managed to attract funds from at least 3.5 million people, making it one of the largest scams in cryptocurrency history.

4. OneCoin was promoted and sold through a multilevel marketing structure, with OneCoin members earning commissions for recruiting others to buy crypto packages.

5. Karl Greenwood, as the top distributor, received a significant share, accumulating over $300 million from OneCoin sales, according to the U.S. Department of Justice.

6. Unlike legitimate cryptocurrencies like Bitcoin, OneCoin had no real value and was designed as a fraudulent venture from its inception, as confirmed by authorities.

7. The co-founders consistently deceived investors by falsely claiming that OneCoin's value was determined by market forces, when in reality, its price was arbitrarily set.

8. Ruja Ignatova faced charges related to fraud and money laundering in October 2017. However, she managed to evade arrest by leaving Bulgaria for Athens, Greece, shortly after a federal warrant was issued.

9. Since her escape, Ruja Ignatova has remained out of the public eye, with her whereabouts unknown. The FBI has offered a reward of up to $250,000 for information leading to her arrest.

10. Ignatova is believed to have taken precautions to alter her appearance and may travel with armed guards or associates, making her a challenging fugitive to locate.

The sentencing of Karl Greenwood sends a strong message against cryptocurrency fraud and financial scams, while the search for Ruja Ignatova continues as authorities aim to bring her to justice. 

Bollywood actor Govinda in connection with a sprawling Rs 1,000 crore online ponzi scam investigation

In a surprising turn of events, the Odisha Economic Offences Wing (EOW) has decided to question renowned Bollywood actor Govinda in connection with a sprawling Rs 1,000 crore online ponzi scam investigation. However, it's important to note that Govinda is currently not considered a suspect or an accused in the case. His involvement, if any, is yet to be determined and will depend on the outcome of the investigation.

The complex scam revolves around a fraudulent entity known as Solar Techno Alliance (STA-Token), which masqueraded as a crypto investment venture. Operating with an online presence in multiple countries, STA-Token managed to collect unauthorized deposits amounting to a staggering Rs 1,000 crore from over 2 lakh individuals across India.

Govinda's association with the company came into the spotlight as he had reportedly endorsed its operations in promotional videos. This endorsement has prompted EOW officials to seek his cooperation in gathering additional information regarding the case.

EOW Inspector General J. N. Pankaj stated, "We will soon send a team to Mumbai to question film star Govinda who had attended STA's grand function in Goa in July and promoted the company in some videos."

The extent of Govinda's involvement, whether it was limited to celebrity endorsement or extended into other areas, will be determined through a thorough investigation. At this point, he remains a potential witness who can shed light on the activities of STA-Token.

The fraudulent company managed to amass Rs 30 crore from 10,000 individuals in various locations, including Bhadrak, Keonjhar, Balasore, Mayurbhanj, and Bhubaneswar, and attracted deposits from investors in several states such as Bihar, Uttar Pradesh, Punjab, Rajasthan, Haryana, Delhi, Jharkhand, Assam, and Madhya Pradesh. The company lured individuals to invest and recruit others under their network chain, promising incentives based on the number of recruits.

Earlier developments in the case saw the arrest of Gurtej Singh Sidhu and Nirod Das, who were the heads of the company in India and Odisha, respectively, on August 7. Furthermore, investment adviser Ratnakar Palai from Bhubaneswar was apprehended on August 16 due to his connection with Sidhu. Lookout circulars have been issued against the company's chief, David Gez, a Hungarian national, and three other Indian executives from Rajasthan, namely Krishna Kumar, Anil Kumar, and Bhoora Ram, all of whom are alleged to have played a role in the scam.

As the investigation unfolds, the role of Govinda and others associated with STA-Token will become clearer, shedding light on the inner workings of this elaborate online ponzi scheme. 

 Rajkot: At least 15 people have lost nearly Rs 18 lakh in a Ponzi scheme into which they were lured with the promise that their money will be doubled.

A complaint has been lodged against Wahid Rauma, 40, promoter of Jeevan Amrut Commercial Operative Credit Society Ltd located near RMC east zone office.

According to the complaint, Rauma had lured people by promising them that he will double their money by investing in insurance, daily savings, monthly savings and fixed deposits for up to five years.

Roshan Sumra, who lodged the complaint, said that she invested in a three-year deposit scheme by paying Rs 5,000 every month. Sumra said Rauma had promised to double her investment within a year.

Some 250-300 people had invested in different schemes run by Rauma but the accused cheated them by not paying either interest or the principal amount.

“Initially, he paid investors some money to gain their confidence,” said Thorala police.

 NAGPUR: An offence has been registered against three people for allegedly duping people of more than Rs 65 lakh in a ponzi scheme in Maharashtra's Nagpur city, police said on Sunday. The accused had allegedly collected Rs 65.82 lakh from several residents of Tajbag and Hasanbag areas of the city between December 2022 and January this year, an official said.

They promised to double the invested amount every month and had initially extended some benefits to a few persons but later started defaulting, he said.

Based on a complaint, a case under sections 420 (cheating) and other relevant provisions of the Indian Penal Code has been registered against the trio, the official added.

 Bhubaneswar: The economic offences wing (EOW) of the state Crime Branch on Friday arrested a man from Balasore for allegedly cheating people across the country, including in Odisha, by offering high interests on their deposits.

The accused was identified as Nilesh Kumar Kar.

EOW said Kar is a small fish and part of a bigger gang that lured people through its dubious mobile application. Kar was the district head of the company in Balasore from where more than 200 people invested in the company.

Mahamanya Jena, a resident of Sahadevkhunta area in Balasore, lodged a complaint with the EOW on March 5 alleging that the company cheated him of nearly Rs 2 lakh.

As per his complaint, he came in contact with the company via Instagram and invested Rs 2.13 lakh between January and March this year. Jena was assured a staggering Rs 50.57 lakh return on March 31. He realised about the fraud only after finding the mobile application shut, sources said.

“We found that the company lured over 80,000 people across the country. The amount of fraud would run into crores. The gang fraudulently claimed to be a US-based crypto mining company authorised by the RBI.

We are trying to arrest other members of the gang,” said EOW’s inspector general J N Pankaj.

 MUMBAI: A two-BHK flat worth Rs 2 crore on Goregaon-Mulund Link Road belonging to an autorickshaw driver, who was arrested by Bhandup police for allegedly cheating people in a Ponzi scheme, has been attached under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) after he defaulted on a bank loan.

The court commissioner on Monday seized the flat.

Punjab National Bank had filed a complaint that Haroon Sattar Shaikh, his wife Nilofar Shaikh and Halima Shaikh had taken a home loan of Rs 1.8 crore from the bank in 2019.

"The borrowers have committed default in repayment of the financial assistance as agreed and their account has been classified as non-performing asset (NPA) in 2020. Advocate Sunil Pandey is appointed as court commissioner to take over possession of the aforesaid secured asset," said M R A Shaikh, additional chief metropolitan magistrate Esplanade.

The court also directed payment of Rs 10,000 to the court commissioner as fee and police as well as police protection.

The magistrate also noted that it was difficult to understand that the borrower was an autorickshaw driver then how did the bank grant him such a huge loan.

The order also mentioned that the security guard and manager of the housing society said the outstanding maintenance amount is Rs 6.8 lakh till date for the flat.

 KOLKATA: Enforcement Directorate officials on Wednesday conducted raids at several places in connection with two Ponzi firms — Pincon Group and Tower Group. ED officers also searched the residence and office of the lawyer who represented the two companies.

The raids began at 7am. Incidentally, teams of Kolkata Police from Alipore Police Station soon reached the spots in south Kolkata where the raids were on. A Rapid Action Force unit was also present. By 5pm, another group of CRPF jawans arrived.

In 2017, Jaipur Police arrested Pincon Group owner Manoranjan Roy. In the same year, the ministry of corporate affairs prepared a list of 331 “suspected shell companies” and Pincon Group’s name figured among them.

The company had allegedly collected Rs 900 crore from investors by promising high returns. In 2018, Pincon Group was banned by the Securities and Exchange Board of India from raising money illegally from the market.

At Palpara in Howrah’s Jagacha, a residential premise of Ramendu Chattopadhyay, who headed the Tower Group, was also raided by ED.

 BHUBANESWAR: The economic offences wing (EOW) of the state crime branch unearthed a scam worth Rs 144 crore by a company that had been illegally operating ponzi business in the guise of crypto trading in Odisha and in other states and arrested a key accused from Pune on Sunday.

The accused was identified as Vishal Sakharam Utkar, a resident of Latur in Maharashtra. Acting on a tip-off, the EOW sleuths arrested him from Mundwa area in Pune.

Utkar is a part of a bigger gang which lured thousands of people in Odisha and outside into investing in crypto mining. The gang created a mobile application, named Getso, and fraudulently claimed to have its headquarters in Washington, USA.

The company offered 6% returns daily on the invested money and a daily withdrawal facility.

It sent bulk messages to people via WhatsApp and Instagram and lured them to invest money in crypto mining and get hefty returns overnight. “Many people fell into the trap and lost their money,” EOW’s inspector general of police J N Pankaj said.

The EOW recently received a complaint from one of the victims here and learnt that the company allegedly duped thousands of investors across the country of Rs 144 crore.

 NEW DELHI: Six men, including a postman, who allegedly cheated people on the pretext of ensuring high returns on investments and getting back their money stuck in lapsed insurance policies were arrested, police said on Tuesday.

The gang was operating from Begusarai in Bihar and a financial analysis shows that transactions of over Rs 40 crore were done through 35 bank accounts and more than 100 people have been duped, PTI quoted a senior police officer as saying.

Investigation was initiated following a complaint from a man that some unknown people cheated him of Rs 2.8 crore in the last seven to eight years on the promise of getting back his money stuck in an insurance policy, police said.

Later, police found that two more people had been cheated of Rs 1 crore by the gang, the officer said and added that the it was operating since 2018.

They also used to promise high returns on investments and collect initial amounts from people, the officer said.

Birender Kumar Das (33), Raushan Kumar (38), Dinesh Kumar (44), Bablu Malakar (51), Pawan Kumar (33) and Mithilesh Kumar (26), all residents of Begusarai, have been arrested, police said.

Das was employed with the postal department in the Bihar town.

Through technical analysis, the accused were found to be operating from Begusarai, deputy commissioner of police (Intelligence Fusion and Strategic Operations) Prashant Gautam said.

On January 10, four people were arrested, while on February 27, Pawan Kumar, who used to provide bank accounts to the main accused in the case Shyam Sundar, was apprehended, he said.

Later, Mithilesh Kumar was arrested from Kaushambi in Uttar Pradesh, Gautam said, adding that during raids in Begusarai, police found that he was running a customer service point centre for a bank.

Police said at his instance, 1,091 ATM cards, 22 instant debit cards, 56 blank passbooks were seized. He was using these ATM cards to withdraw money that had been deposited by people, they said.

With PTI inputs

 MUMBAI: The Enforcement Directorate (ED) has seized Rs 18.5 crore, in the form of cash and bank balance, of Pune-based VIPS Group of Companies associated with Dubai-based entrepreneur-investor Vinod Khute for Foreign Exchange Management Act (Fema) violations.

Khute is allegedly engaged in illegal Ponzi scheme, crypto exchange and wallet services.

ED investigation has showed that VIPS Group collected Rs 125 crore investment through banking channels apart from cash from investors by promising high returns. This money was then moved out of the country through hawala channels and various shell companies.

The probing agency in a press release said that Global Affiliate Business, one of the companies run by Khute, has been running an illegal multi-level marketing scheme wherein it offers a commission to its members if they refer other consumers/ members.

The ED, during investigation, also found that Global Affiliate Business was also marketing the business of Kana Capital which was engaged in brokerage under which various clients trade forex, crypto and stocks.

The central agency further stated that funds to the tune of Rs 125 crore were collected using this modus.

TOI tried to contact the group on the number provided on its website, but no one responded.