4 held for running chain-link business, duping depositors in Bengaluru | Bengaluru News

BENGALURU: Four people, including the founder of a private firm, have been arrested on the charge of cheating through unregulated deposit schemes offered to the public and collecting deposits from them.
The accused are the founder of e-Biotorium Network Pvt Ltd, Sunil Joshi, 58, of Indore, its Karnataka director Sheik Sadiq Ali, 32, of Subhashnagar, and distributors Yogesh N, 44, of Subramanyapura and Pramoda Gopinath Nayak, 51, of Goa.
DCP (central) R Srinivas Gowda said the accused held a promotional meeting with more than a 1,000 people at Ambedkar Bhavan on January 15. “They are running a private firm using a pyramid chain-link system. They were convincing people to deposit money in their firm to distribute a few products and were luring them with commission and perks if they got new members to the company,” Gowda said.
High Grounds police conducted a raid on the premises and detained, and later arrested, the four people. Police have registered a case under IPC section 420 (cheating) and other sections under the Banning of Unregulated Deposit Schemes Act, 2019.
According to preliminary investigation, Joshi started the company in 2020 and its website claims that it is a biomagnetic mattress manufacturing and trading company with its head office in Miragaon, Maharashtra.
Police said they have recorded the statements of hundreds of depositors, and 50 of them alleged that the firm had cheated them by not giving any commission after they deposited money. As part of the investigation, the company’s bank accounts have been frozen. Gowda said the suspects had even offered perks to “early birds” (those who came initially and deposited money) and used such people to attract more depositors.
“They had intention of closing the firm after they collected huge deposits from the public. We’ve prevented a big fraud by arresting them. The probe will continue,” Gowda said.

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