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FRAUDULENT MULTI LEVEL MARKETING SCHEME ON BITCOIN INVESTMENT AND INDUCEMENT ON HIGH RETURNS BUSTED WITH THE ARREST OF TWO ACCUSED PERSONS.

April 22, 2018 09:14 AM

New Delhi (Face2News)

Cyber Crime Cell of Special Cell hasarrested Deepak Jangra, aged 37 years and Deepak Malhotra, aged 56 Yrs, both residents of Sonepat, Haryana the masterminds of the fraudulent scheme launchedon the pretext of high returns on bitcoin investment. T

Anyesh Roy,DCP/Cyber Special cell, said on Saturday that online portal having url www.bitmineplus.org was claiming the returns on the basis of bitcoin miningand trading, and also falsely claimed to be operated by a US based company.Total 5000 IDs have been found to have been duped by them and these IDs have invested in the luring scheme. Initially, the returns to the tune of 12% in amonth were offered.

The fraudulent plan had the ingredients of monthly payoutand the referral income for the persons on the topline. The scheme could lastfor few months before the bubble busted and the investors started questioningfor the promised returns. On this Deepak Jangra introduced a new crypto-currencyby the name of “BMP” and tried to divert the investors on his newcrypto-currency with falsely claimed high market price.

COMPLAINT AND INFORMATION OF THE SCAM

A complaint was received at CyberCrime Cell in which it was alleged that multiple investors were duped by a fraudulent scheme started by accused Deepak Jangra and Deepak Malhotra. Thea llegations were leveled against the accused that he had made false representations and assurances in order to induce the investors to invest theirmoney in the business model promising high returns from bitcoin mining andtrading on an international level with the base in US. They induced theinvestors with guaranteed high returns ranging from 12% by virtue ofinternational trade and bitcoin mining through his web portal having urlwww.bitmineplus.org.

They used the concept of Multi-level marketing (MLM) which has the basic principle of referral incomes from the newmembers, payouts from individual’s investment and also percentage payouts fromthe investment from the investors of the downline. They organized meets/parties in various five star hotels in Delhi/NCR. The multiple investors gotattracted by the scheme and also due to persuasion from the topline members.This project came into vogue in the month of Dec. 2016.

Initially the investors got the due returns which helped in adding new investors and led to multiple investmentsfrom the existing clients. After few days of illusion the returns were stoppedby the company. The fact was that there was no mining or trading platform ofthe company. So the whole scheme was to get the investment with the predesignedmotive to cheat.

Deepak Jhangra got his own crypto currency developed in the name of BMP and had a plan to shift the investors to his owncurrency. For his own gain at this point he got the prices of BMP manipulated.By this time the investors lost the confidence in the model and startedpressing for their money. Deepak Jangra on finding no new way to cheat had noother option but to abscond from his known addresses along with his family inthe month of Feb. 2018.

INTERROGATION AND INVESTIGATION

On the allegations leveled in the complaint the enquiry was taken up at Cyber Crime Cell, Spl. Cell. and the facts were verified and subsequently a case u/s 406/420/120- B/34 IPC and 66 IT Act was registered. During enquiry and investigation efforts were made to trace the accused. In this regard information was collected from various sources. It was revealed that Deepak Jangra post absconding had not contacted any person in his social circle. The efforts bore the fruit and finally he was traced.

A dedicated team led by Addl. DCP KPSMalhotra comprising of ACP RD Meena, Insprs. Vijay Gahlawat, KP Sah, KanhaiyaLal Yadav, SIs Somveer, Bhanu Pratap, ASIs Anil, Rambeer, HCs Manoj, Satyavrat,Cts Prashant, Rahul and Randeep was formed.

Accordingly raids were conducted at the probable hideouts of Deepak Jangra and he was apprehended on 11 Apr and was taken on police custody. He was subjected to intensive interrogation in which he revealed the plot. He got the idea of investment from gainbitcoin.com which was already running in the market with the payouts of 10% per month for 18 months. After his exposure to the bitcoin MLM scheme of gainbitcoin he developed the idea of starting his own scheme. For the purpose of selling the idea to public he needed a good marketing person. He roped in Deepak Malhotra for the same. A new office was established at Best Sky Tower, Netaji SubhashPlace, New Delhi. Deepak Jangra further added various members on thelines of the model ensuring high returns to the investors.

The project got rolling in December 2016 and the fraudulent model was offering high returns to the tune of 12%monthly, referral income by getting new members and also commission from thedownline members. The members were told to buy bitcoins from the differentportals or the investment was taken in cash and the same were got transferredto the website www.bitmineplus.org run by the accused persons. The returns were also given in the form of bitcoin and initially the withdrawal was also made by various investors. These confidence building measures helped the mastermind toattract more investment from the new and existing members.

When the regular payouts stopped theinvestors started asking the question to the company. On this Deepak Jhangracame up with the new plan of launching new crypto currency. He bought time andpromised that he will start the business soon with a new portal having urlwww.futuretrade.org. The investors were told that due to the problems faced by the company the rate of interest was reduced. In the meantime he developed new crypto currency in the name of “BMP”. He had planned to shift his investors onhis new model but by the time the rising debt and the daily pressure from theinvestors was increasing day by day. Deepak Jhangra shifted his base overnight to evade investors. Further investigation is underway.

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