Trader falls prey to Ponzi scheme, loses Rs34.5 lakh

Yet another case of a Ponzi scheme has surfaced in the city. This time the victim is a businessman in the city. The victim, Ilyas Rafiq Memon, who owns Honest oil depot in Shahpur, has accused a city-based investment firm of luring him to invest Rs34.5 lakh in their scheme.

Ilyas, a resident of Baug E Masira society in Juhapura, alleged that owners of one Phoenix investments cheated him and did not return the amount he had invested in their scheme. In his complaint, Ilyas told Navrangpura police that five persons, including his brother-in-law Siraj Kadar Memon, had opened two offices in Navrangpura under the banner of Phoenix investments. One office was located in Goldsukh complex and another in City Ratn complex.

Ilyas alleged that Siraj and four of his friends Bipin Makwana, Rakesh Patel, Yogesh Patel and Bhavesh Patel lured him with their high interest yielding schemes and made him invest Rs34.50 lakh a few months back. Ilyas got convinced as he knew Siraj personally and met him often.

Ilyas claims that he borrowed money from many of his relatives to invest in the firm. Initially, for a few months he was given cheques regularly. However, the owners closed their offices one month back without giving any prior notice.  Ilyas finally lodged a compliant at Navrangpura police station on Saturday, after he failed to trace the firm owners.