Ex-army man arrested for luring people into fraudulent scheme

A 51-year-old former army man has lured hundreds of investors into a pyramid-style scheme and swindled nearly Rs 3.5 crore.

Johny K V, a Kerala native, allegedly promised investments in UK-based companies with huge returns.

Based on a complaint from a victim of his fraudulent scam, a team from the economic offences wing of the Central Crime Branch (CCB) raided Johny’s office in Basaveshwara Nagar and arrested him for cheating IPC Section 420 and the Banning of Unregulated Deposit Schemes Act.

Hailing from Ernakulam, Johny retired as a nayak from the Indian Army and started the investment business in December. Claiming to be an active member of a US company, Johny persuaded many on social media, WhatsApp groups and Zoom calls to invest Rs 1,109 for a basic membership, sent 60 ads to their social media account for them to watch and offered Rs 4 for watching each ad. He promised they would earn a minimum of Rs 240 per day.

After the initial payment, he asked them to take premier membership for an additional fee and introduced more people into the business in the pyramid-style scheme to earn a commission. A senior police officer said Johny was aiming to lure 30 lakh people into the business, collect money from them and flee to another city.

Joint Commissioner of Police (Crime) Sandeep Patil said the accused had wound up the business when he was arrested by the CCB team. He has been taken into custody for further investigation.