Twenty-one police personnel and doctors fell for the scam, but it’s suspected that the number could be as high as 250
Karthik Shrivastav with wife Priti
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The Economic Offences Wing (EOW) of the Mumbai Police has arrested one of the five members of a Versova-based family that allegedly duped 21 police personnel and doctors of Rs. 22 crore through a ponzi scheme from 2013-14.
The con family allegedly swindled over 250 police personnel, but most of the victims from the force have not come forward for fear of being questioned about their assets and sources of income.
Karthik Shrivastav (39) was arrested on Monday, said a senior EOW officer. His father, Mohan Prasad Shrivastav, mother Vibha, wife Priti, sister Archita, and a family associate and brother of an assistant police inspector, Dharmendra Nikumbh, have also been accused of executing the ponzi scheme. All of them have been booked under relevant sections of the IPC and the Maharashtra Protection of Depositors Interest Act for cheating, criminal breach of trust, criminal conspiracy and fraudulent default by financial establishments.
The scam is touted to be amongst the biggest considering the large number of police officers -- ranging from constables to DCPS -- who are suspected to have been ensnared, and the total investment fraud could run into several crores of rupees. mid-day had on October 14 last year blown the lid off the scam.
mid-day's report on Oct 14, 2016
The Shrivastavs allegedly lured cops by promising returns of 180%-400% on investments in 9-14 months.
An EOW officer said Karthik claimed that the investments were lost in a volatile share market. 'But running a ponzi scheme itself is a crime. That’s why he has been arrested.”
Sources said the most police personnel, egged on by the police department, kept the scam under the wraps till a doctor came forward to file a complaint in August last year.
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