Ponzi Scheme Promising 22% Returns Scams Indian Investors, Causing $100 Million Loss

Indian police arrested two individuals involved in the Falcon Invoice Discounting Ponzi scheme, which defrauded investors of nearly $100 million. The scheme promised returns upto 22% and used new investments to pay older ones, as per news reports.

Over 7,000 Indian Investors Duped in Ponzi Scheme

Thousands of investors in India are desperately trying to recover nearly $100 million after falling victim to a Ponzi scheme run by Falcon Invoice Discounting, which promised significant returns on short-term investments, as reported by police and victims interviewed by a news agency.

Indian authorities arrested two individuals on Saturday following a case filed against Falcon Invoice Discounting, which had claimed to offer returns as high as 22% by allegedly connecting investors with major companies like Amazon and Britannia, as per Reuters news report.

Since 2021, Falcon collected ₹1,700 crore (about $196 million) from nearly 7,000 investors. However, it has only refunded half of the invested amount, according to the Telangana police.

Ponzi Scheme Affected Investors Seek Legal Recourse 

Fifty affected investors are exploring legal options to recover a combined loss of ₹500 million. Many investors were introduced to the platform through social media.

The Ponzi scheme operated by using funds from new investors to pay returns to earlier investors, with the remaining money being funnelled into various shell companies, according to authorities. Investigations are ongoing, and law enforcement is actively searching for the founder of Falcon, who is the main suspect in the case.

Some of the victims remain uncertain about whether they will ever recover the money, which in some cases includes their entire life savings.

Conclusion

The Falcon Invoice Discounting Ponzi scheme has left thousands of investors grappling with significant financial losses, highlighting the growing risk of fraudulent investment schemes in India.

As authorities continue their investigation, the case serves as a reminder for investors to be cautious of high-return promises and to thoroughly vet investment opportunities. With many victims still uncertain about recovering their funds, it remains crucial for investors to stay informed and vigilant to avoid falling prey to such scams in the future.

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