Fraud firm ran ponzi scheme to hoard wealth

City-based firm Vikram Investments essentially ran a ponzi scheme by using the money collected from new investors to pay its old stockholders, according to the police investigation into the investment fraud.

A senior police officer confirmed that former cricketer Rahul Dravid and his three relatives, badminton legend Prakash Padukone and badminton player Saina Nehwal are among the celebrities who invested in the firm. But there are no records to show the firm invested in the stock market or commodities.

The firms managing director and the prime suspect, Raghavendra Srinath, was arrested on March 11 after a local businessman filed a police complaint. Srinath, however, told the police he had paid all the investors and was left with no money. Police have a list of 680 people who invested in the firm and have concluded that around Rs 400 crore was invested until Wednesday.

City-based firm Vikram Investments essentially ran a ponzi scheme by using the money collected from new investors to pay its old stockholders, according to the police investigation into the investment fraud.

A senior police officer confirmed that former cricketer Rahul Dravid and his three relatives, badminton legend Prakash Padukone and badminton player Saina Nehwal are among the celebrities who invested in the firm. But there are no records to show the firm invested in the stock market or commodities.

The firm’s managing director and the prime suspect, Raghavendra Srinath, was arrested on March 11 after a local businessman filed a police complaint. Srinath, however, told the police he had paid all the investors and was left with no money. Police have a list of 680 people who invested in the firm and have concluded that around Rs 400 crore was invested until Wednesday.

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