Money multiplying the racket burst, five arrested
A five-member gang that is said to have deceived more than 18,000 people in Chennai, Coimbatore, Salem and Tiruppur under the pretext of investing in a money-doubling program has been arrested.
Deputy Police Commissioner Neelankarai KN Sudarshan said: “In this case, the defendants had a modest educational background, but they deceived well-educated people using a unique modus operandi in the city and in several parts of it. ‘State. We have arrested five people and a further investigation is underway to locate a female accomplice. “
The main defendant Sathish Kumar, 35, is a dropout. The gang members started their operations under the guise of multilevel marketing (MLM) a decade ago and deceived several investors in the western districts, then they expanded their operations.
They appointed team leaders to solicit and bring investors to the company on a commission basis, police said.
Explain the operating mode of the gang, R. Kamalakannan, a police inspector at Neelankarai station, said the accused would attract people claiming to have iridium stock with a company called “John MacNan” in Germany and was willing to sell the item. They promised to donate up to 10 lakh out of an investment of 10,000 of the proceeds from the sale. But they didn’t give the returns as promised.
They set up an office in a chic bungalow on East Coast Road in Neelankarai with a few computer peripherals and pretended to be busy with the papers needed to bring the proceeds back from Germany. They held “business meetings” with the team leaders and solicited investments. In a meeting on Sunday, a team leader questioned the accused about the promised returns, which caused a stir.
Based on a complaint filed by K. Chalapathy, 53, from Mogappair, police rounded up the gang in the bungalow and arrested five – Satish Kumar, 35, and Raja, 37, from Tiruppur, Mohan Kumar, 47, and Saravana Kumar. , 43, from Coimbatore and Balakrishnan, 50, from Tiruchi. Laptops, desktops and two cars were seized from them.