How Did 1.25 Lakh Investors from Mumbai Lose Over Rs 1,000 Crore?

Mumbai, 9th January 2025: Mumbai police arrested three senior officials of Platinum Hern Pvt Ltd, which allegedly operated a Ponzi scheme under the name Torres Jewelry, defrauding approximately 1.25 lakh investors of around ₹1,000 crore. Two company founders, believed to be Ukrainian nationals, are suspected to have fled the country, and the police have issued Look Out Circulars (LOCs) for them.

Due to the scale of the fraud, the case has been transferred to Mumbai’s Economic Offences Wing (EOW) for a more comprehensive investigation. On Tuesday, the Shivaji Park police apprehended Taniya Xasatova, 52, the general manager; Sarvesh Ashok Surve, 30, the director; and Valentina Ganesh Kumar, 44, the store in-charge.

Taniya, an Uzbek national, and Valentina, a Russian-origin Overseas Citizen of India, were joined by Surve, who, despite his role as an aadhar card operator, was made the company’s director on paper. All three were remanded to police custody until January 13 after appearing in the MPID court.

The police revealed that the company had no authorization from the RBI or any government body to solicit investments. “Their financial crime was meticulously planned and executed,” said Inspector Yuvraj Sarnobat.

Company founders John Carter and Victoria Kowlenko are believed to be the masterminds behind the fraud and are suspected to have fled the country. The police are pursuing them as part of the ongoing investigation.

DCP Zone 5 Ganesh Gawade confirmed that three arrests had been made, and LOCs had been issued for the two foreign suspects. He added that the matter is being transferred to the EOW for further action.

As of now, 61 investors have been named in the FIR, reporting a loss of ₹13.48 crore. The FIR was filed by Khar-based vegetable vendor Pradipkumar Vaishya, 31, who, along with his relatives, lost ₹4.5 crore.

The police have seized ₹28 lakh in cash from the Torres store in Dadar and frozen about ₹4 crore in three bank accounts linked to the company. Investigations revealed that the company operated from rented locations and that authorities would soon begin identifying assets for recovery.

The Ponzi scheme was launched in the Mumbai Metropolitan Region (MMR) in February through six luxury showrooms, including Dadar, Grant Road, Kandivali, Mira Road, Kalyan, and Sanpada. Victims reported that the company conducted seminars across the city to attract investors with promises of high returns.

The company offered several investment schemes, such as 2% weekly returns on gold, 3% on silver, 4% on Moissanite stones in silver, and 5-6% returns on Moissanite stones alone. Later, the interest rates increased, and those who invested cash were offered 11.5% returns, along with a 20% referral bonus for bringing in new investors.

To gain investors’ trust, senior executives claimed to acquire gold at a lower price and made a 300% profit, from which they could afford such returns. Investors, initially reassured by timely returns, encouraged family members and friends to join, only to lose all their money later.

In a bid to cover their tracks, the accused staged a robbery at one of the stores in Sanpada. The company claimed it was the work of rogue employees who had robbed the stores, but the police discovered it was a staged event to delay their escape. CCTV footage confirmed the robbery was fabricated to buy time for the masterminds to flee.

Hundreds of investors, including those who had mortgaged valuables and taken loans, were left devastated. Kalpana Kadam from Powai revealed her family lost ₹43 lahks, much of it from liquidating fixed deposits and mortgaging jewellery. Security guard Devendra Singh from Kurla invested ₹3.5 lakh by mortgaging his wife’s jewellery without her knowledge. Shailaja Shinde, 50, from Diva, who lost ₹3 lakh, expressed despair over the situation.

BJP leader Kirit Somaiya visited the Torres store, estimating that the scam could exceed ₹1,000 crore. He met with investors and discussed the issue with senior officials from Mumbai Police’s Economic Offences Wing.

The company’s contact numbers and email on its website went unanswered.