Sunday, September 22, 2013

Several duped by other firms earlier


JAIPUR: The Gold Sukh Trade India Ltd was not the first company to have duped gullible investors on such a large scale. Thanks to police's lackluster approach and ignorance of the investors, such multi-level marketing firms have been operating fearlessly with the cops busting only a handful of them from time to time.

The horrifying fraud committed by Gold Sukh Trade India Limited is just the tip of an iceberg with as many as 100 large scale multi-level marketing firms operating across the state and duping gullible investors, sources said.

If one goes by the police records, most of the fraud cases committed by multi-level marketing firms and other individuals remain half unsolved with the main culprits still at large.

In the past two years, police have busted about 15 such companies, but arrested only employees of these firms. In most cases, the owners and those who were running these companies have not been arrested.

"Most of the owners have criminal background and get embroiled in legal troubles even before the frauds through multi-level marketing come to the light. So the local police are aware of such people, but choose not to act.

Corruption is indeed involved," a senior police officer said. He added that as an estimate, complaints against at least 100 big companies are lying with the police. The number of small-scale companies is alarmingly high.

"This fraud case was highlighted because investors include high-class people. Otherwise, no one likes to entertain such complaints in rural areas of the state," the officer added.

Commissioner of police B L Soni said a coordinated drive will be launched against such firms in the city. He added that police stations have been asked to take such complaints seriously and act promptly.
Courtesy:
TNN Nov 26, 2011, 02.27AM IST
http://articles.timesofindia.indiatimes.com/2011-11-26/jaipur/30443878_1_multi-level-marketing-gullible-investors-firms

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