Two held for multi-level marketing fraud

Hyderabad: The Special Operation Team (SOT) of State police arrested the managing directors of Crown Marketing Private Limited, a city-based multi-level marketing company, for their alleged involvement in money chain fraud case.

The SOT sleuths arrested two accused, Nagaraju and Srinivas, from LB Nagar area on Friday. “Efforts are being made to nab the other partners of the firm who are still at large,” SOT inspector Upender said adding that several persons were involved in the scam but no complaint had been registered so far against Nagaraju or the company. “The company made a claim that the money invested by its members was being re-invested in real estate or share market,” the police officer said.

After amassing a huge amount of money from its members and subscribers, the company was shut down in January. Following the closure, Nagaraju remained underground for over six months only to resurface in July. He again started the business.

A case has been registered under Prize Chits and Money Circulation Scheme (PCMCS) Act.