It was on Saturday that the economic offenses wings of Cyberabad arrested nine youths among which eight are aged below 30 under the changes of MLM fraud case. These convicts are charged for hiring distributors who were insisted to lure unemployed youths, retired people, homemakers or anyone in need of quick money.
The plan started 2 years back when one of the convicts named Mohammed Rizwan Younus registered a company with the name of Pro HealthyWayz International LLP. He was backed by his father financially. Later others joined him.
Among the other ringleaders, there are four IIT-Kharagpur dropouts: Bhattu SSekonda Bhukya Anil Kumar, Harshavardhan Raju, and Pappala Sai Charan. And, the name of other four convicts who were a part of this pyramid scheme is V Venu Naik, Aluru Naresh, Konda Srinivasulu and Y Satya Manikanta.
As per the reports, the company hired 40,000 investors around Andhra Pradesh and Telangana. Each of these distributors paid a minimum of INR 4000. Later, they were encouraged to connect as many youths as possible who were in need of financial support or wanted a job desperately.
As per the company’s scheme, the members were asked to join two other new members for receiving the lucrative commissions. There were performance-based ratings as well which encouraged members to outperform each other.
As per the details, the company sold a total of 18 products which included Ved gain for weight gain, Ved Fit for weight loss, Gilloy Juice to boost immunity booster, Ortho Oil, Heart Care, Herbs oil and a lot more. These products were sourced from companies based out of Rajasthan, Telangana, and Punjab.
The sources say that all of these accused have prior experience with MLM operation and had worked with two other companies in the past. While one is shut down, the other is still able to pay the commission. With such a background, what could have we expected?
When getting to these convicts, police also recovered three costly cars and in a total of 40 Lakh cash in their bank accounts. All of which have been seized as of now.