The Torres investment scam, also called the Torres jewellery scam, took place in Mumbai, India. A jewellery company allegedly defrauded thousands of investors by using a mix of Ponzi and multi-level marketing schemes to generate huge profits fraudulently.
How the Scam Worked
The company attracted investors by promising high returns on investments in diamonds and other precious stones. To appear credible, they provided fake certificates, supposedly from well-known international organizations, to validate the stones’ authenticity. However, investigations later revealed that these stones were counterfeit, with low-value gems being sold at exorbitant prices under the pretense of being high-quality diamonds.
Scale of Fraud
The Economic Offences Wing (EOW) of the Mumbai Police received over 2,000 complaints against the company. The total estimated fraud amounted to ₹38 crore. Authorities have seized assets worth ₹21 crore, which include cash, gold jewellery, and 11 luxury cars.
Key Individuals Involved
Several people have been arrested in connection to the scam, including Tania (also known as Tazagul Khatasova) and Russian national Valentina K, who is an Overseas Citizen of India (OCI) cardholder. Authorities also suspect the involvement of 11 other foreign nationals, mostly from Ukraine, who are currently on the run.
Legal Actions Taken
The Enforcement Directorate (ED) has initiated a money laundering case linked to this scam. The scam came to public attention when hundreds of investors crowded the company’s jewellery store in the Torres Vastu Centre building in Dadar, Mumbai, demanding their investments back.
Current Status and Lessons Learned
The investigation is ongoing as authorities work to recover the remaining funds and arrest the other individuals involved. This case highlights the importance of investor awareness and stricter regulations for investment schemes to prevent similar fraudulent activities in the future.
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