Multi-level Marketing Scam: ED attaches Rs 38.33 cr assets in Maharashtra, Goa

New Delhi [India], June 5 : The Enforcement Directorate (ED) has attached movable and immovable assets located in over half a dozen locations across Maharashtra and Goa valued at Rs 38.33 crore in a multi-level marketing scam, the agency said on Wednesday.
ED's Nagpur unit attached these assets located in Nagpur, Amravati, Akola, and Madgaon districts, among other areas across Maharashtra and Goa, in the alleged scam of Shreesurya Investments (Sameer Joshi) under the Prevention of Money Laundering Act (PMLA), 2002.
The properties were attached on May 31. The attached assets include movable (Fixed Deposits) and immovable assets acquired by Sameer Joshi, his companies and his co-accused accomplices.
ED investigated the investigation based on a First Information Report (FIR) filed by Nagpur Police.
The FIR, registered under various sections of the Indian Penal Code, 1860, revealed that Joshi allegedly defrauded and entrapped the public by promising exorbitant returns through schemes promoted by his Hindu Undivided Family (HUF), Shreesurya Investments, modelled after the Wasankar scheme.
However, ED said, Sameer Joshi "after alluring the public by making false assurances, with all the ill-will and ill-intention, duped the investors and used the public funds for the accumulation of properties in his name, his family members and business entities."
"Sameer Joshi also made false and misleading advertisements about the benefits of the scheme."
As per the chargesheets filed by law enforcement agencies, a total of 1,267 investors were identified who were defrauded to the tune of approximately Rs 105.05 crore, which was ascertained as the total Proceeds of Crime (PoC) to date.
In this case, the Securities and Exchange Board of India (SEBI) has also filed a prosecution complaint under Section 24(1) of the SEBI Act, 1992, against Sameer Joshi.
During the course of these investment activities, various commission agents were employed by the Shreesurya Group, said the ED, adding, "these commission agents accepted 3-7 per cent of commission on the investments done by the investors."
Also, with the intent of duping of the new and genuine investors and for making them invest in the various investment schemes floated by Shreesurya group, the co-accused Commission agents organised "Investors Meet" to gather maximum amount of investment.
"A total of 25 of such agents were identified as co-accused in the supplementary chargesheets filed by the LEA and the properties derived by them from the proceeds of crime (PoC) have also been attached by the ED," added the federal agency.