Like Scam: Noida man befools 6 Lakh people of Rs 3700 crore
People were be fooled for a scheme in which they were asked to hit like button online in return for big money. This was initiated by a Noida based BTech graduate Anubhav Mittal is the one who duped people into What today is called Like Scam. He started a Ponzi Scam that promised big returns for hitting ‘likes’ online.In a little over a year, Anubhav Mittal’s Social Trade perpetrated a fraud of Rs 3,700 crore.
Social Trade. Biz Scam
Anubhav Mittal Arrested for Socialtrade.biz Fraud
On Thursday three persons – Anubhav Mittal, Sridhar Prasad, and Mahesh Dayal were arrested from Sector 63 in Noida. Mittal, said to be the kingpin holds a B.Tech degree and hails from Ghaziabad.
The scheme operated through online links sent to phones of subscribers that they were asked to click. These would sometimes also be links to Facebook or Twitter profiles of other subscribers. A fake server was set up where these links would terminate. They had floated a fake company called Ablaze Info Solutions Private Limited that operated from there.
During raid the Special Task Force (STF) team found 250 passports, purportedly of some high performers and employees of the fraudsters, who were to be rewarded with a trip to Australia.
The STF has also informed the Reserve Bank of India (RBI), the Income Tax department and market regulator SEBI about the case.
What is a Ponzi scheme?
A Ponzi scheme is a fraudulent investment operation where the operator promises and pays initial investors short-term returns that are far higher or unusually consistent compared to other investment options available in the market — not from profit earned from legitimate business, but from new capital collected from newer investors, enticed by the promise of high returns.
Ablaze paid monthly rent of Rs 7 lakh for the office. Mitta took home a ‘salary’ of Rs 5 lakh a month while Shridhar received Rs 1 lakh. Police said subscription money was their only revenue and the scheme was doomed to fail.
Hundreds of investors gathered outside the office of Ablaze Info Solutions Private Limited in Sector 63 on Thursday when they came to know that the money they had invested in the company disappeared. However, it was a bizarre situation with a group of investors protesting in support of accused Anubhav Mittal and his company while another group protested against the company.
Source: Economic Times
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