Online Ponzi-Cum-Betting Racket: Look out Circular Issued against Dubai-based Operator

Bhubaneswar: On the request of Economic Offences Wing, Bhubaneswar, the Bureau of Immigration (BoI) has issued Look out notice against scamster Md. Saif of Shaheen Bag in Delhi.

He is one of the main accused in this case and controls this scam from Dubai.

FIR was registered on the complaint of few (800+) duped investors of Ganjam district, Odisha. They and Lakhs others (Pan India, across the states) had invested money in 18football.com with a motive to earn quick money. 18football.com is a hybrid model of fraud where Ponzi scheme (Multi-level Marketing) is run online giving a name of football betting/ gaming APP, the EOW said.

The investors are promised of giving lucrative benefits like 3% daily compound return on investment, recharge bonus, referral bonus, extra bonus on the earning of the downline members, salary bonus, daily withdrawal option etc. Investors need to create an account with “18football.com” either by application or through offline referral link, and were being asked to bet money in some football matches as prescribed in website/ APP. Investors were also provided with the so called foreigner “mentor” to assist them in betting. These mentors used to communicate through telegram or Apps only. There were extra bonus/ commission for introducing/ recruiting new members, it added.

In order to promote and to allure the innocent public, the fraudsters were also taking up the promotional activities like some social works, charity etc. in the rural areas and giving it huge publicity so that people will consider this scheme as a bonafide organization.

The fraudsters although initially paid the promised return for some few days to the investors, yet in the latter stage when the membership increased, stopped making any payment and closed the app “18football.com”.

The Scammers used multiple shell companies/ firms and their directors to route the ill-gotten money. They also used mule accounts for multi-layering of money transaction to confuse the law enforcement agencies.

One of the companies was Kolkata based M/s Hakim & Rustam Fabrics Pvt. Ltd. of which two directors were arrested earlier. They had confessed to get small amount of commission to run this shell company. However they used to get the order/ direction from one Md Sheikh Saif from Dubai.

The fraud by 18football.com has got all India ramifications, and the fraud amount involved is suspected to be more than Rs.1000 Crore, out of which EOW has been able to trace transaction of approximately Rs.300 Crores till now.

Look Out circular is generally issued to alert immigration check posts at airports/seaports etc. to alert law enforcement agency, if the wanted person tries to leave the country or arrive inside country from abroad.

Further, it is requested that anyone giving credible information leading to arrest of the above noted accused Md. Saif will be suitably rewarded. The information can be given on the Mobile No.8249600495. The name/details of the informer will be kept secret. Investigation of the case is continuing, the EOW said.