2 held for Rs 24 cr investment fraud, over 500 cheated

CHENNAI: The police arrested two directors of a finance firm for allegedly cheating public to the tune of Rs 24 crore by floating bogus investment schemes. This is the latest in a series of such white collar crimes that has come to light in the recent past.

The arrested persons were identified as Vasudevan and Suresh, who had floated a finance firm in the name of ‘Day By Day’ in Kancheepuram town. They lured investors by offering Rs 3 lakh return if they invested Rs 1 lakh. The duo also promised precious gifts like gold coins for those joining their investment schemes.

The lure of 300% returns and gifts made more than 500 people to invest money in the firm, said the police. After luring public into investing in their scheme, the accused returned profits promptly for the initial six months, but stopped paying after that. After their queries remained unanswered, many of the investors began to suspect that they were caught in a fraud and filed a complaint at the Kancheepuram SP office.

The police picked up Vasudevan from his hiding place in Krishnagiri, and based on his inputs, Suresh was arrested from his hometown near Ranipet. They were produced before a magistrate and remanded in judicial custody.