₹1,000 Crore Torres Ponzi Scam Unraveled: CEO Tausif Riyaz Arrested as 3,700 Investors Face Losses
In a major breakthrough, Mumbai Police’s Economic Offences Wing (EOW) arrested Tausif Riyaz, the CEO of Platinum Hern, the company behind Torres Jewellery, in connection with a massive Ponzi scam that has reportedly scammed over ₹1,000 crore from around 3,700 investors. Riyaz, who had been on the run for weeks after the fraudulent investment scheme was exposed, was caught at a hotel in Lonavala. He was subsequently presented before a Mumbai court and remanded to police custody until February 3. This arrest marks the fifth in the ongoing investigation into the Torres Ponzi scheme, which has caused significant financial loss and widespread outrage.
In a major breakthrough, Mumbai Police’s Economic Offences Wing (EOW) arrested Tausif Riyaz, the CEO of Platinum Hern, the company behind Torres Jewellery, in connection with a massive Ponzi scam that has reportedly scammed over ₹1,000 crore from around 3,700 investors. Riyaz, who had been on the run for weeks after the fraudulent investment scheme was exposed, was caught at a hotel in Lonavala. He was subsequently presented before a Mumbai court and remanded to police custody until February 3. This arrest marks the fifth in the ongoing investigation into the Torres Ponzi scheme, which has caused significant financial loss and widespread outrage.
The Scandal Behind Torres Jewellery’s Fraudulent Scheme
The Torres Ponzi scam first came to light in December 2024 when hundreds of investors gathered at the Torres Vastu Centre in Dadar, Mumbai, after the company failed to honor its promises of returns on investments. Investors had been enticed to invest in gold, silver, and moissanite jewellery, with promises of high returns, luxury gifts, and even cars and flats. However, the company stopped making the promised payments, leading to protests and subsequent investigations by law enforcement agencies.
Riyaz had earlier claimed he was the one who alerted the Enforcement Directorate (ED) about the fraudulent activities. Despite his claims of whistle-blowing, he had managed to evade arrest until now. Authorities had issued a lookout circular (LOC) against him, and he was tracked down in Lonavala, where he had been hiding.
A Web of Deception
The scam, which is said to have caused ₹57 crore in reported losses, involved deceptive multi-level marketing tactics. Investors were promised lucrative returns, ranging from 2-9% weekly, on their investments in jewellery, gemstones, and synthetic moissanite stones. These stones, marketed as high-value investments comparable to diamonds, were sold at inflated prices.
The promoters of Torres Jewellery also implemented a referral system, offering bonuses for recruiting new investors, which further fueled the scheme’s expansion. The company’s advertising campaigns, conducted through seminars, social media platforms, and “unlicensed” lucky draws, aimed to attract customers by offering luxury rewards such as cars and expensive gadgets.
Ongoing Investigations and Arrests
The Enforcement Directorate (ED) has already frozen over ₹21 crore in bank deposits as part of their investigation into the Ponzi scheme. On January 23, the ED raided 10 locations across Mumbai and Jaipur, targeting properties connected to the promoters of Torres Jewellery. Authorities have also indicated that the scam involved a complex network of financial manipulation and money laundering, which they are actively investigating.
The police and ED continue to track down additional suspects, as more arrests are expected in the coming weeks. Investigators are working to uncover the full extent of the fraudulent scheme and provide justice to the victims who have been left in financial turmoil.
As the investigation progresses, authorities are calling for greater transparency and stricter regulations in the financial sector to prevent such scams from preying on innocent investors. The Torres Ponzi scheme serves as a stark reminder of the risks associated with high-return investment promises and the need for due diligence before committing funds.
Conclusion
The Torres Ponzi scam is one of the largest and most devastating investment frauds in recent times, leaving thousands of investors grappling with massive losses. With the arrest of CEO Tausif Riyaz, investigators are hopeful that the full scale of the scam will be uncovered, and the perpetrators will face justice. As the investigation continues, the focus remains on providing restitution for the affected investors and preventing similar fraudulent schemes in the future.
Sources By Agencies
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