₹1,000 Crore Torres Ponzi Scheme: How 3,700 Investors Were Scammed & Latest Updates

₹1,000 Crore Torres Ponzi Scheme: Tausif Riyaz, the managing director of Platinum Hern, the company behind the controversial Torres jewelry brand, was arrested by the Economic Offences Wing of Mumbai Police on Sunday in connection with the multi-crore Torres Ponzi scam. Riyaz was caught at a hotel at Lonavala after he had been on the run for the past several weeks after the scam broke.

He became the fifth person to be arrested in the case and was subsequently sent to police custody until February 3 after where he appeared in a Mumbai court. His arrest has come in light of the continuing investigation into the fake investment scheme of Torres, which has inflicted substantial financial losses on more than 3,700 investors.

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In December 2024, the scam came out in the open when several investors converged at the Torres Vastu Centre in Dadar after the company had failed to make due payments. Many were lured into investing with promises of aesthetic returns motored by gold, silver, or moissanite hardware, which could grant liberated savings in the form of cars, flats, and gift hampers. However, when the ventures went sour on these sweet promises, it started a series of protests and investigations by law enforcement agencies.

Even while Riyaz claimed that he'd been the one to tip off the Enforcement Directorate (ED) on the Torres Ponzi scheme, he had gone into hiding for weeks. Authorities had issued a lookout notice (LOC) against him and he'd reportedly moved from Patna to Mumbai before being tracked down to Lonavala based on a tip-off.

On January 23, as part of that ongoing investigation into Torres, the Enforcement Directorate froze over ₹21 crores safely held in bank deposits. The ED searched 10 locations across Mumbai and Jaipur, targeting properties linked to the promoters of Torres Jewellary. The suspects are thought to have been involved in ponzi schemes running within the ambit of intricate money laundering and rendition operations.

A Ponzi scheme, which is now said to have caused a ₹57 crore loss, used trickery to attract investment in Torres. Police allege the jewellery brand used multi-level marketing and misleading advertisements to lure in investors. The promoters of the company promised great returns, but in reality, they never delivered, leaving behind a great financial mess for those who trusted them.

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The FIR alleged that the company and its promoters would "lure" investors with high returns on investments made in gold, silver, diamond jewelry and gemstones ranging from 2 percent to 9 percent weekly.

Recruitment of new investors was incentivised through bonuses, leading to a referral system to "attract" further victims, the ED said.

The company sold synthetic moissanite stones as high-value investments, comparable to diamonds, according to the agency.

While misleading investors about the appreciation potential, these stones were sold to the investors at higher prices, the agency said.

With an ongoing investigation, attention is now focused on finding more suspects and uncovering the full measures of this scam.A ounted as a National News case, this supposedly multi-crore investment scam is in series and will lead to further arrests in the next few weeks.

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