Odisha EOW cracks online ponzi cum betting racket

The Economic Offences Wing (EOW) of Odisha police busted an online ponzi cum betting racket running from China and Dubani and arrested two persons from Shibpur in Howrah, West Bengal in this connection.

The accused have been identified as Rustam Khan and Md. Hakim (Directors of a mule/shell company Hakim & Rustam Fabrics Private Limited, Kolkata).

After arrest, both the accused persons were produced before the Court of Chief Judicial Magistrate, Howrah on Wednesday and were brought on the strength of five days transit remand for their production before the designated Court under OPID, Berhampur.

Out of 150 bank accounts involved in this racket, EOW have analyzed 17 accounts till date, out of which transaction of Rs 108 Crore have already been traced.

It is suspected that money involved in this scam may go beyond Rs 1000 crore.

Thousands of investors had invested money in 18football.com with a motive to earn quick money. 18football.com is a hybrid model of fraud where Ponzi scheme (Multilevel Marketing) is run online giving a name of football betting and gaming application. The investors are promised of giving lucrative benefits like 3 per cent daily compound return on investment, recharge bonus, referral bonus, extra bonus on the earning of the downline members, salary bonus, daily withdrawal option etc.

The fraudsters although initially paid the promised return for some few days to the investors, yet in the latter stage when the membership increased, stopped making any payment and closed the app “18football.com”.

The scammers used multiple shell companies and firms and their directors to route the ill-gotten money. They also used mule accounts for multi-layering of money transaction to confuse the law enforcement agencies.

Out of 150 bank accounts involved in this racket, EOW have analyzed 17 accounts till date, out of which transaction of Rs 108 Crore have already been traced.