The Hindu : Kerala / Kochi News : Money chain fraud: three arrested

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Tuesday, Jun 21, 2011
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Kerala - Kochi

Money chain fraud: three arrested

Staff Reporter

KOCHI: Three persons were arrested on Monday by the Aluva police in what appears to be yet another money chain fraud.

The arrested include Bijoy Sebastian from Naduvillekunnu House, Kadanadu, Pala, who is the managing director of Verizon Builders, Dr. Sandeep K. Jose, 42, from Infra Hillock, Changampuzha Nagar and Sunil Hendez, 28, from Thykkattukavu, Aluva.

Circle Inspector of Aluva, Prabul Chandran, speaking to The Hindu, said that accused got investors to apply for membership in an establishment called Club Encode for Rs. 6,000 and with an additional Rs. 1,000, they got shares in Verizon.

Preliminary investigations found that over 13,000 people had enrolled in the scheme.

The company has built a project with 15 flats in Aluva in which 11 flats have been sold.

Land bought

However, 2 acres of land has been bought in Munnar and Puthenkurisu.

As the investors had not got any returns as was promised, a case was lodged with the police.

From Salem

The accused were nabbed from Salem when the police tracked the mobile of Bijoy, which was switched off and on intermittently since the case came up at the station four days ago, said Mr. Chandran.

The probe is continuing as to the extent of the fraud, he said.

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