Police say they have busted another Bengaluru-based Ponzi company that conned nearly 100 people out of their hard-earned money by promising to do Halal business.
Tilaknagar police arrested the director and three staffers of Iqra Wealth Management, whose offices are located at 30th Cross in Jayanagar 4th ‘T’ Block, after many investors filed a complaint.
According to the investors, the company owes them at least Rs 2.49 crore.
Founded in 2017, the company attracted Rs 4.21 crore from 91 investors by promising very high returns. It stayed afloat for three years and paid 57 investors Rs 2.31 crore.
The company wound up in September last year after the management shut down and vacated the office. At the time, it owed the remaining 34 investors at least Rs 1.91 crore. Following complaints from investors who are still to be paid, police raided the homes of the company’s director and three staffers. Laptops and some documents were seized. A police investigation found that the company paid significant sums of money to non-investors, including a person who received Rs 1 crore through a demat account.
Police seized Rs 12 lakh in cash during the raids. They have sent two issues to the 91 investors, asking them to submit documents of their investment.
To date, 21 investors have appeared before the police and given their statement, putting their dues at Rs 2.49 crore.
Police have sent the company’s papers for an audit and are waiting the report. They have urged all the people who invested in the company to come forward with the necessary documents and give a statement.
Police have yet to summon the person who received Rs 1 crore by demat account for questioning.
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