Over ₹10B Stolen! Mastermind Behind India's Pearlvine International Ponzi Scheme Arrested, Assets Worth Over ₹500M Frozen

India's Enforcement Directorate (ED) announced this week that Neeraj Kumar Gupta, the mastermind behind the Delhi-based Ponzi scheme Pearlvine International, along with several accomplices, have been arrested.

Following a complaint filed by victim Sonny Chyrmang in 2021, authorities launched an investigation into this nationwide investment scheme.

Investigations revealed that the unregistered entity Pearlvine International falsely claimed to be based in the United States. Between 2018 and 2023, the entity recruited members in India to promote its investment scheme. In 2015, the company held promotional seminars in Thailand. By 2022, the entity reached its peak, recruiting nearly 8 million members across India and overseas.

Pearlvine International promised returns of ₹30 million with an investment of just ₹2,260, resulting in significant investor losses. However, the exact number of victims remains unclear as the company maintained no standardized or accessible records.

Pearlvine International allegnly raised at least ₹15.75 billion, with approximately ₹3.9535 billion not returned to investors.

Investigators indicate Pearlvine International exhibited a pyramid structure, characteristic of Ponzi scheme. The company required participants to recruit new members, driving continuous growth in investors. Earlier participants received returns from "activation fees" or "registration fees" paid by new members. Such investment schemes are unsustainable for long run, and promoters are liable to face legal action.

The Shillong Sub-Zonal Office of the ED has provisionally seized assets worth ₹179.1 million, including 13 properties and luxury vehicles allegedly purchased with illicit proceeds.

On December 10, the ED froze assets linked to the website www.pearlvine.com under the Prevention of Money Laundering Act. And the worth of the assets associated with the scheme reached ₹549.8 million.

The ED's investigation remains ongoing, and authorities would take more time before formally charging suspects. A spokesperson stated that case details will be shared after charges are filed.

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In the risky financial markets, no investment can be guaranteed with 100% returns. If an individual or entity claims your investment will definitely yield high returns, it is almost certainly a scam.

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