One held for Ponzi fraud in capital

A multi-level marketing company owner, who allegedly cheated over 250 people of more than Rs one crore and escaped to Dubai, was arrested as soon he arrived at the airport here, police said today.
The Economic Offences Wing (EOW) of Delhi Police arrested Amit Kothari, a resident of Paschim Vihar in Delhi who is is presently residing in Saeed Tower at Sheikh Zayed Road in Dubai, from IGI airport on May 15 when he returned from Dubai.
Kothari's partner and co-accused Manoj Sharma of Delhi's Yamuna Vihar locality is still absconding.
The duo had formed an company multi-level marketing company -- Maximus Trade Incorporation -- and launched schemes in January 2010 inviting general people to invest.

The accused had created a website of their company in the name Maxforexonline.Biz showing their schemes or plans on the internet.
They used to lure investors by saying that they were dealing in business of foreign currency exchange saying that there is huge margin in the business and their company was exempt from paying income tax as it was located off shore.

"They assured a return of 15 per cent to 20 per cent per month on the investments made by the investors. After collecting crores of rupees from general public, the accused closed their web site and absconded without returning the promised money to the investors," said K K Vyas, DCP Economic Offences Wing (EOW).

Kothari, a Commerce graduate from DU, was doing businesss of manufacturing plastic strips.
"After graduation he started working with his father but later on they suffered losses in the said and closed it. The co-accused Manoj Sharma planned to have a company registered abroad for doing multilevel marketing business in India," he said.
Complaints of about 250 victims have been received against them so far with the allegations of cheating to the tune of more than Rs one crore, Vyas said.
Both the accused shared the money and after collection of huge amounts, they fled without returning the money to the investors.

Kothari fled to Dubai and settled there along with his wife and children.
They used to ask the customers for a minimum investment of rupees equivalent to USD 200 USD or more, in multiples of USD 100 at a time as investment.
Investors depositing an amount equivalent to USD 200 up to USD 999 were assured a return of 15 per cent per month and those investing an amount equivalent to USD 1000 USD upto USD 1999 were assured return of 17 per cent per month.
Persons investing amount equivalent to more than USD 2000 were assured return of 20 per cent per month. The returns were assured to be paid for 12 months.

A member introducing other members in his down-line was given a commission of 10 per cent of monthly returns of the down-line members too.
Police have also sealed a bank account in the Corporation Bank at Shalimar Bagh in the name of Kothari and one account in IDBI Bank in the name of Sharma.