Thousands lose money as Bengaluru pyramid scheme winds up

A city-based company selling wellness products wound up overnight after cheating thousands of investors who were lured by its multi-level marketing.

The Central Crime Branch (CCB) is hunting for N Lazarus Yabes, the CEO of Vevetos Wellness Centre Private Limited, following complaints from several customers. The CCB believes he has fled Bengaluru.

The company, having its offices at the World Trade Centre, Malleswaram, sold a weight loss product, a health drink and a health supplement through pyramid scheme or multi-level marketing and promised high returns within a short time.

Mathikere resident Dhananjaya B (42) was among thousands of people who enrolled as members, according to a senior police officer. Dhananjaya told the police that Yabes and Sam Vijay Praveen, the company’s vice-president, lured him with huge returns. Not only did he enrol, but he also introduced almost 5,000 members to the company.

According to Dhananjaya, Vevetos promised an 8% commission on every member enrolled but stopped paying three weeks ago. The commission was paid by a company branch located in Neelasandra. His phone calls to the CEO and other executives went unanswered. When he visited the company’s office, he found it locked. He subsequently filed a police complaint. A CCB officer confirmed that the company’s office was locked.