Coimbatore: Founder of the Green Crest Investment company and his son have been arrested and imprisoned for allegedly defrauding upto Rs.60 crore through Ponzi scheme. The Police are on the lookout to arrest five other members involved in this.
Coimbatore: Founder of the Green Crest Investment company and his son have been arrested and imprisoned for allegedly defrauding upto Rs.60 crore through Ponzi scheme. The Police are on the lookout to arrest five other members involved in this.
Earlier, the Green Crest Investments MLM company which is now being operated from the Krishnaswamy Nagar area near Pankaja Mill was functioning under the name Siddhi Vinayaga Trading near Coimbatore GH on Trichy Road.
The owner of the company Manikandan and his son Sanjay published advertisements announcing attractive return schemes offering 0.5% daily interest for investments. Lured by their striking offer, many people came forward and invested in various schemes.
It is even alleged that the founders had usedphotographs of them with Cricketer Sachin Tendulkar and popular actors, to gain interest and goodwill of the people.
However, the validity of the photos, is yet to be ascertained.
Initially, the founders of the said company has deposited the promised returns in the bank accounts of the customers. However, since May it is alleged that no returns were paid to the customers.
When questioned, the father and son duo have allegedly been escaping with lame excuses but never paid the promised interests. The duo have even allegedly issued threats to their investors who demanded their return and the principal amount.
Following this, more than 50 people laid siege to the MLM company owner's house, this morning.
The people who invested their money in the MLM company said that more than 2,000 people in Coimbatore and around 8,000 all over TN have invested in the company upto to the tune of Rs. 60 crore. The enraged investors filed complaints with the Economic Crime branch wing here and demanded immediate action on the alleged fraudsters.
Based on their complaints, the police arrested Manikandan and Sanjay Kumar, father and son and commenced investigated.
Cases have been filed against the duo under sections 120B, 406 and 420. Later, they were remanded. The Police are on the lookout for Manikandan's wife Padmavati, daughter Saranya, and other partners including Srinivasan and Karthikeyan.
Earlier, the Green Crest Investments MLM company which is now being operated from the Krishnaswamy Nagar area near Pankaja Mill was functioning under the name Siddhi Vinayaga Trading near Coimbatore GH on Trichy Road.
The owner of the company Manikandan and his son Sanjay published advertisements announcing attractive return schemes offering 0.5% daily interest for investments. Lured by their striking offer, many people came forward and invested in various schemes.
It is even alleged that the founders had usedphotographs of them with Cricketer Sachin Tendulkar and popular actors, to gain interest and goodwill of the people.
However, the validity of the photos, is yet to be ascertained.
Initially, the founders of the said company has deposited the promised returns in the bank accounts of the customers. However, since May it is alleged that no returns were paid to the customers.
When questioned, the father and son duo have allegedly been escaping with lame excuses but never paid the promised interests. The duo have even allegedly issued threats to their investors who demanded their return and the principal amount.
Following this, more than 50 people laid siege to the MLM company owner's house, this morning.
The people who invested their money in the MLM company said that more than 2,000 people in Coimbatore and around 8,000 all over TN have invested in the company upto to the tune of Rs. 60 crore. The enraged investors filed complaints with the Economic Crime branch wing here and demanded immediate action on the alleged fraudsters.
Based on their complaints, the police arrested Manikandan and Sanjay Kumar, father and son and commenced investigated.
Cases have been filed against the duo under sections 120B, 406 and 420. Later, they were remanded. The Police are on the lookout for Manikandan's wife Padmavati, daughter Saranya, and other partners including Srinivasan and Karthikeyan.