Two Ukrainians masterminds in Mumbai's massive Ponzi scam that duped hundreds of investors

synopsis

A high-stakes scam that duped hundreds of investors in Mumbai has unveiled Ukrainian nationals, Artem and Olena Stoin, as the masterminds behind the Torres Jewellery Ponzi scheme. The fraud which promised extraordinary returns on investments in gemstones, gold, and silver, has left over 1,500 victims reeling.

The Economic Offences Wing (EOW) of Mumbai Police is spearheading the investigation into the elaborate scheme. According to an NDTV report, authorities are now working to track down the duo, suspected of masterminding the fraud under the guise of Platinum Hern Pvt. Ltd.

Initially, the scheme offered weekly returns as high as 11%. For months, the payouts were regular, luring in more unsuspecting investors. However, the façade crumbled when payments abruptly stopped on December 30, 2024. The final blow came on January 6, when all six outlets of Torres Jewellery in Mumbai shut their doors without warning, leaving investors in despair.

India Today reported that the company targeted lower-middle-class individuals, enticing them with promises of returns on moissanite stones. Many victims invested sums ranging from a few thousand rupees to several crores, with the total swindled amount exceeding Rs 22 crore (₹220 million).

To bolster credibility and attract larger investments, Torres Jewellery dangled irresistible incentives. Customers were enticed with gemstone pendants, luxury cars, and grand lucky draws. However, as reality set in, the very stores that once symbolized wealth became flashpoints for protests by angry and devastated investors.

Pradeep Vaishya, a vegetable vendor from Nariman Point, revealed his staggering loss of ₹13 crore alongside seven others. “Most of us don’t even want the returns anymore; we just want our hard-earned money back,” lamented one distraught investor.

The EOW plans to issue a Look-Out Circular (LOC) for Artem and Olena Stoin, believed to have fled India. In addition, the company’s directors, CEO Tausif Reyaz, Chief Analyst Abhishek Gupta, and other senior officials face charges of cheating, breach of trust, and criminal conspiracy. Investigators are also scrutinizing the authenticity of gemstones sold and the legitimacy of luxury cars used as bait.

Torres Jewellery’s official YouTube channel recently published a video accusing Reyaz and Gupta of orchestrating an internal coup. The video claims they vandalized stores, looted funds, and framed other employees to cover their tracks. Clips of smashed counters and ransacked showrooms have only deepened the mystery.