It seems that the police in the State of Andhra Pradesh, India, have suddenly woke up from slumber. There are suddenly raids on various small-time money circulation schemes all over the State. The recent spate of cases filed by Corporate Frauds Watch might be the reason behind these raids.
However, they are yet to act upon the big players like Amway, Herbalife, PACL, AgriGold and others.
On Wednesday, the North Zone police of Hyderabad arrested three persons associated with Moon Life Team Works, which has been luring people with promises of making them rich overnight through money circulation scheme. The police seized eight computers, land documents, Rs. 24,000 in cash and has frozen Bank accounts containing Rs. 22 lakh (i.e. Rs 2.2 million).
Police said P Narayana Chary, started the firm under the guise of real estate business and was assisted by M Sambaiah, who is a poet with the pseudonym Shilpa Jagadish and K Yadaiah. The trio enrolled nearly 3,800 members into their multilevel marketing scheme. They purcahsed land at faraway places for Rs. 3 lakh to Rs. 5 lakh converted them into plots and sold them at higher prices.
They also offered gifts like car and foreign trips. Police said that they collected nearly Rs. 11 crore (Rs. 110 million) from 3,800 members and disitributed Rs. 5 crore (50 million) as commission as well as offered them gifts.
The same modus operandi has been practiced by various companies like PACL, Agrigold, VVR Housing and a number of other entities.
It is high time, police reacted sharply to the reports at an early stage instead of waiting for the victims to come forward and file the complaints. Usually victims complain only after the schemes collapsed.