On Sunday, the Economic Offences Wing (EOW) of Mumbai Police arrested Tausif Riyaz, the chairman and chief executive of Platinum Hern, the mastermind behind the Torres Jewellery Ponzi scheme, police said. After spending weeks wandering the streets evading the law, Riyaz was eventually apprehended in a hotel, in Lonavala. This is the fifth arrest from the case, exposing more than 3,700 investors to substantial financial injury.
The Scam Unveiled About Torres Jewellery Ponzi Scheme
The Torres Ponzi scam came to light in December 2024 when the company abruptly stopped making promised payments, prompting hundreds of investors to gather at its Dadar-based Torres Vastu Centre. Investors were enticed to put money into gold, silver, and synthetic moissanite jewellery with assurances of high weekly returns ranging from 2–9%. Exaggerated claims, such as cars, flats and, luxury gift baskets also lured victims into the scam (SAEL, n7).
Nonetheless, when payments came to a standstill, demonstrations started, which resulted in inquiries from the Office of Foreign Asset Control (OFAC) as well as the EOW and the Enforcement Directorate (ED). Based on the authorities, the deception encompassed fraudulent multi-level marketing schemes and false advertising activities by the firm, which artificially inflated the selling price of synthetic moissanite stones and announced to investors that the stones would gain value in the future.
Riyaz’s Arrest and Investigation Progress
Riyaz, who initially claimed to have tipped off the ED about the scam, had been on the run since the scandal broke. A lookout circular (LOC) was issued against him, and he was eventually tracked down in Lonavala based on a tip-off. He went to court on Monday and was remanded to police custody until February 3.
In the meantime, the ED has lodged the freezing amount of Indian rupees 21 crores in bank deposits and raided 10 premises in Mumbai and Jaipur belonging to promoters of Torres Jewellery. According to investigators, the involvement of the scam has led to a loss of more than ₹57 crore, on the assumptions of money laundering and employing a complex network to carry out the scam.
Fraudulent Tactics and Promises
The FIR levelled against Torres Jewellery and its promoters points to a model for recruiting new investors, which included commission bonuses in an accompanying referral system. Unlicensed fortunate draws and attractive seminars also attracted the victims, promising attractive luxurious products such as high-grade mobile phones and cars as compensation.
After the probe goes deeper down, the authorities work hard to identify the scale of the fraud and to catch new defendants. More arrests are anticipated in the coming weeks.
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