The Economic Offences Wing (EOW) of Thane City Police has uncovered a multi-crore Ponzi and investment fraud that duped thousands of investors, primarily working-class individuals, out of their hard-earned money.
The scam, run by Phoenix Investments in Dombivli for the past three to four years, promised high returns and initially paid out investors until early 2024. However, since then, the masterminds and their accomplices allegedly fled the city with crores of rupees, leaving offices and branches shuttered and investors in despair.
Hundreds of affected investors approached Advocate Sangram Ghuge Patil for legal help. He said, “Hundreds of investors approached me, mostly working-class people who had invested their hard-earned money in fraudulent schemes promoted by Phoenix Investments’ Dombivli branch. A complaint was filed with the Dombivli police station, and we met senior officials at EOW Thane who took over the case and launched an investigation.”
The EOW registered the case under provisions of the Indian Penal Code for cheating and fraud and the Maharashtra Protection of Interest of Depositors (MPID) Act, naming the accused Gaurav Bhagat, Vikin Patne, Devendra Tambe, Paresh Bhoir, Darshan Mhatre, Dioesh Dandekar, and two others, along with the companies Phoenix Investments and Phoenix Financial Solution LLP, which had been operating the fraudulent schemes since 2021.
Using technical surveillance and human intelligence, the EOW traced and arrested four accused: Gaurav Bhagat, Devendra Tambe, Vikin Patne, and Amol Tayde, an agent who had lured investors into the schemes. All four were remanded to police custody until October 6.
EOW officials have stated that efforts are now underway to trace the invested funds and recover the deposits of victims. “The investigation will continue to ensure justice for the investors who lost their hard-earned money in this elaborate Ponzi scheme,” an EOW spokesperson said.
The Phoenix Investments case highlights the growing need for caution among investors and vigilance against too-good-to-be-true returns, particularly in small-scale urban centres where such fraudulent schemes often thrive.
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