New Delhi [India], September 18 : The Economic Offences Wing (EOW) of Delhi Police has arrested a former advocate for allegedly masterminding a massive Ponzi scheme that duped investors of approximately Rs 100 crore by promising exorbitant returns through stock market investments.
According to the police, the accused, identified as Sanjay (36), a resident of Geeta Colony in Delhi, was running the scheme through a network of companies, including Trade Cops Pvt. Ltd. and Tradecop Financial Services. The accused had earlier been lodged in Karnal jail in connection with a similar case.
Sanjay and his associates, including alleged mastermind and fellow advocate Deepak Thakur, solicited funds from the public by guaranteeing a fixed monthly return of 8%. They claimed this profit was generated through sophisticated "in-house algorithms" capable of yielding over 20% monthly in the financial markets.
Investors were promised that their investment would double within just 25 months, with a 4% monthly payout and the other 4% being reinvested. The scheme initially paid returns to early investors to build credibility, but soon ceased payments before the accused disappeared.
A joint complaint by Gaurav Goyal and others led to the registration of an FIR (No. 19/25) on February 11, 2025, under sections 316(2), 316(5), 318(4), and 61(2) of the Bharatiya Nyaya Sanhita (BNS). Sections of the Banning of Unregulated Deposit Schemes (BUDS) Act have also been invoked. To date, 56 complainants have approached the EOW, reporting losses totalling around Rs 2.5 crore, though the estimated scale of the fraud is believed to be around Rs 100 crore, affecting nearly 200 people.
Investigation revealed that the funds were ultimately routed to Tradecop Portfolio LLP. The alleged mastermind, Deepak Thakur, remains at large. Police have uncovered that the accused used the illicit money to purchase a land in Chhata Tehsil, Mathura, valued at approximately Rs 10 crore, for which attachment proceedings have been initiated.
The modus operandi was a classic 'rob Peter to pay Paul' strategy, where money from new investors was used to pay returns to old ones, creating an illusion of a legitimate business until the scheme collapsed.
Sanjay completed his LLB from CCS University, Meerut, and practised as an advocate at Karkardooma Courts for two years before venturing into the fraudulent investment scheme. His wife, also an accused in the case, is currently absconding. They have two minor sons.
This case is part of a wider pattern, with four other FIRs registered against the accused persons in Delhi, Haryana, and Uttarakhand, said the police.
The EOW has advised the public to exercise extreme caution against schemes offering high or fixed returns for stock market investments. Citizens are urged to always verify the registration of any firm with regulatory bodies like the ROC, SEBI, NSE, or BSE before investing. SEBI has explicitly barred stock brokers from referencing past or expected future returns of algorithmic trading strategies in a September 2022 circular.
Further investigation into the matter is ongoing.