Padma Bhushan awardee Michael Ferreira arrested in QNet scam

Michael Ferreira arrested for QNet scamMichael Ferreira arrested for QNet scam

Hyderabad: Former Billiards champion Michael Ferreira, a winner of the prestigious Padma Bhushan, has been arrested over a marketing fraud worth millions.

Mr Ferreira, 78, was arrested in Mumbai. He and his three associates have been taken to Hyderabad. They are accused in a case of Rs 400-crore alleged fraud involving the multi-level-marketing company QNet.

Nearly five lakh investors from across the country were reportedly cheated in the scam.

QNet used the banned pyramid business model for their multi-level marketing schemes to lure investors. It operated in India under the “Vihaan Direct marketing selling company”, which sold products like magnetic disks, herbal products and holiday schemes. Mr Ferreira and his associates were directors of the company.

QNet ran a ‘Ponzi scheme’, seeking investments between Rs 30,000 to Rs 7.5 lakh, the prosecutor had said, adding the investors never got the high returns they were promised.

“The four directors of the company, including Michael Ferreira, have been brought to Hyderabad from Mumbai on warrant,” a senior police official attached to Central Crime Station (CCS), a wing of Hyderabad Police, said today.

They have been brought here as part of further investigation and will be interrogated, he said.

The Mumbai Police’s Economic Offences Wing (EOW) had taken them into custody on September 30 this year in connection with the QNet case. The EOW has so far arrested 19 persons in the case.

The FIR was registered in Mumbai in August 2013 under the Prize, Chits and Money Circulation Schemes (Banning) Act, 1978 and Maharashtra Protection of Interest of Depositors Act.

Be the first to comment on "Padma Bhushan awardee Michael Ferreira arrested in QNet scam"

Leave a comment

Your email address will not be published.


*