The Economic Offences Wing (EOW) of Mumbai Police has uncovered that a woman, Olena Stoin, alongside her partner Artem Stoin, both Ukrainian nationals, are behind the massive Ponzi scam that has left hundreds of investors duped. The scam, linked to the Torres jewellery chain, promised high returns on investments in gemstones, gold, and silver but led to huge losses when the company shut its stores.
The Torres jewellery scam came to light last week when six stores across Mumbai were abruptly closed after the company collected substantial investments under the guise of a lucrative scheme. The Stoin duo, identified as the masterminds, allegedly played a pivotal role in planning and executing the fraud, luring investors with promises of high returns. Authorities are currently tracking down the couple, who are believed to have fled.
The Scheme and Its Lure
The Torres jewellery chain, which opened six stores in and around Mumbai in February 2024, enticed investors with its “bonus scheme.” Customers were promised a pendant containing a moissanite stone worth Rs 10,000 for every Rs 1 lakh invested. Along with the jewelry, the scheme offered lucrative interest rates, initially at 6% and later rising to 11%. The company claimed to pay out interest weekly, and while customers received payouts for several months, the payments ceased about two months ago.
The scheme also involved a bumper draw, where customers who made cash payments were promised additional interest. The promotion, which ran until January 5, aimed to draw in more investments, but on January 6, the stores were abruptly shut, leaving investors devastated.
Luxury Car Draws and Other Promises
Adding to the allure of the scheme, Torres offered 14 luxury cars as prizes in a lucky draw for investors. The extravagant offers were part of the marketing strategy to increase the customer base. However, authorities are now investigating how these cars were distributed and if they were part of the fraudulent activities to draw in more victims.
Investors Left in Shock
The investors, many of whom are from Mumbai’s lower-middle class, including vegetable vendors and small traders, are now facing a financial crisis. The amounts invested by individuals range from a few thousand rupees to several crores. A group of seven investors who filed complaints with the police have claimed they invested over Rs 13 crore in total.
“I invested my hard-earned money thinking it was a legitimate business. The brochure had GST and CIN numbers, and I trusted it because it seemed official,” one investor said. Others echoed similar sentiments, questioning why the government had allowed such a scam to operate despite the company’s registration.
Company’s Alleged ‘Coup’ Claim
Amid the investigation, Torres’ official YouTube account uploaded a bizarre video claiming that the company’s CEO, Tausif Reyaz, and Chief Analyst, Abhishek Gupta, led a coup within the company. The video, which features people vandalizing the stores and stealing money, suggests that Reyaz and Gupta had orchestrated the fraud from within the company. However, the claims of a “robbery” are being scrutinized by investigators as they probe deeper into the company’s operations and the true extent of the scam.
As the investigation unfolds, police are working to locate the Stoin couple and the other suspects involved in this large-scale Ponzi scheme. Authorities are urging anyone who has been affected by the scam to come forward and report their losses.
Police Actions and Next Steps
The police have registered a case against the holding firm Platinum Hern Private Limited, its directors, CEO, general manager, and a store in-charge, charging them with cheating and criminal conspiracy, among other offenses. Meanwhile, the victims remain hopeful that their investments will be returned, despite the challenges in recovering the stolen funds.
With the scam affecting so many individuals, police are ramping up efforts to trace the Ukrainian nationals involved and bring them to justice. The Torres jewellery case continues to raise questions about the vigilance of authorities in curbing such fraudulent schemes in India.
Soureces By Agencies