ED files prosecution complaint against two in MLM companies promoting Ponzi schemes in Hissar

Enforcement Directorate (ED) on Saturday said that it has filed a prosecution complaint which is equal to the charge sheet against the two directors Radhe Shyam and Bansi Lal of a Hissar based Multi Level Marketing (MLM) Scheme promoting company Maker Lifecare Pvt Lt and FMLC Global marketing Pvt Ltd in a money laundering case before Panchkula Special Court for PMLA cases.

The prosecution complaint was filed with a prayer for awarding punishment to the accused persons and confiscation of attached assets to the tune of Rs 261.35 crore under PMLA.

ED investigation against said companies was initiated on the basis of various FIRs registered in the state of Haryana under section 120 B, 34,420 of IPC and 4,5,6 of prize chit and money circulation (banning act, 1978) read with Haryana Protection of interest of deposits in Financial Establishment Act, 2013.

The officials in the probe agency said that FIRs were also registered at various police stations in Telangana for cheating lakhs of investors in which the key accused Radhe Shyam and Bansi Lal of Haryana had duped the innocent persons in guise of Multi Level Marketing (MLM) Scheme and promoting various Ponzi schemes in many parts of the country though their companies Future Maker Life Care Pvt Ltd. and FMLC Global marketing Pvt Ltd. The MLM scheme consisted of the pyramidal structure where the persons at the top of the pyramid gain at the behest of the loss borne by the persons at the base of the pyramid.

Investigation conducted under Prevention of Money laundering Act (PMLA) revealed that around 31 lakh investors lost their money by making investments in the schemes floated by the accused in which the initial investors were paid high returns to attract more investors and entice current investors to invest more money.

“The schemer pays a ‘return’ to initial investors from the investments of new participants, rather than from genuine profits whereas accused Radhey Shyam used to lure innocent persons through speeches in the fancy seminars conducted across India promising high returns up to five to eight times of the investment in just two years”, the probe agency officials said.

The other accused Bansi Lal was the financial mastermind whose role consisted of layering and laundering of the tainted money collected from the investors in various paper concerns and the funds so collected were diverted in to the bank accounts of their family members and thereafter properties were acquired using the ill-gotten money, the officials further said.

On identification of these assets in the form of a flat in Chandigarh, 2two flats in Delhi, agricultural lands, balances in bank accounts, seized cash totalling to Rs 261.35 crore which were provisionally attached under PMLA and also confirmed by the Adjudicating Authority.