Luxury cars, fake gems, and a Ponzi scheme! How a Ukrainian couple orchestrated Mumbai’s jewellery fraud

Mumbai Police's Economic Offences Wing (EOW) on Saturday (Jan 11) said that it has identified two Ukrainian nationals as key suspects in orchestrating the Torres jewellery Ponzi scam. According to NDTV, Artem and Olena Stoin, the two accused have defrauded hundreds of investors.

The scheme promised high returns on investments in gemstones, gold, and silver, luring individuals from the lower middle class, including small traders and vendors.

The scam came to light after six Torres jewellery stores abruptly closed last week, leaving investors with unpaid dues. Following complaints, the police registered cases against Platinum Hern Private Limited, the parent company, and several individuals, including its directors, CEO, general manager, and a store in-charge.

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Charges include cheating, criminal conspiracy, and related offences.

Torres jewellery outlets, launched in February 2023 across six locations in Mumbai and surrounding areas, sold gemstone jewellery and promoted a bonus investment scheme. Customers investing Rs 1 lakh were promised a moissanite pendant worth Rs 10,000 and weekly returns of up to 11 per cent. Investors reported receiving some payouts initially, but payments ceased two months ago. Police investigations later revealed that the gemstones provided were fake.

In a final push to attract funds, Torres uploaded a video on January 5 promising an 11 per cent return for investments made before the deadline, with rates dropping afterwards. Many investors made last-minute cash payments, only to find the stores shuttered the following day.

The scheme also used luxury cars as prizes in lucky draws to entice more participants. Investigators are examining these vehicles, suspecting they were leveraged to boost credibility and attract additional investments.

The scam has affected hundreds of small-scale investors, with reported losses ranging from a few thousand rupees to crores. Seven complainants claim to have collectively invested over Rs 13 crore. Many victims expressed frustration, citing the presence of GST and CIN details on the company’s documents, which they believed lent credibility to the scheme.

In a video uploaded to Torres' official YouTube account, the company alleged that its CEO, Tausif Reyaz, and Chief Analyst, Abhishek Gupta, orchestrated a coup and looted company stores. The video showed scenes of vandalism, claiming the duo and their "accomplices" were involved in systematically misappropriating company funds for months.

Authorities are now working to trace the Stoin duo, believed to have been instrumental in devising the scheme. The investigation continues, with efforts focused on recovering funds and holding those responsible accountable.