In a significant crackdown, the Sarnath police dismantled a pyramid scheme racket on Tuesday, arresting seven members of a gang accused of defrauding hundreds of young individuals of lakhs of rupees through a fraudulent Multi-Level Marketing (MLM) operation. The gang had been operating under the guise of a call centre for months, with over 250 victims repeatedly visiting their office in a desperate attempt to recover their money before law enforcement intervened.
Police Action Following Complaints
Acting on multiple complaints lodged by victims, DCP Varuna Pramod Kumar directed ACP Sarnath Vidush Saxena and Sarnath SHO Pankaj Tripathi to conduct a raid on the premises. During the operation, ACP Saxena observed a large crowd of youths gathered around the office. The police detained seven individuals who were allegedly running the MLM scheme disguised as a call centre and initiated interrogations.
Modus Operandi of the Scam
The investigation revealed that the gang lured unemployed youths with promises of job opportunities. Victims were required to pay Rs 30,000 to join the pyramid scheme. Subsequently, they were asked to attend training sessions and were coerced into recruiting their family members and acquaintances into the network. Several victims had even brought their relatives into the scheme, from whom money was also collected. The accused promised higher commissions for recruiting more people, despite the absence of any fixed salary structure or actual product, exposing the operation as a blatant pyramid scheme scam.
Victims and Evidence
Police found more than 250 young men from districts of eastern Uttar Pradesh and Bihar gathered at the site, many visibly distressed. Officers noted that the victims appeared psychologically trapped, having already lost their money to the fraudsters. Seven operators of the company were arrested after evidence confirmed they had been running the fraudulent operation for the past two months. Several mobile phones, documents, registers, and electronic devices were seized during the raid and are currently under examination. Further investigation is underway, ACP Saxena stated.
