7 MLM firms, cooperatives embezzled Tk400 crore: CID

Highlights:

• Among the 7 MLM companies, multipurpose cooperatives: 
• SPC World Ltd Tk150cr
• Supan Product Ltd Tk50cr
• Rupsha Multipurpose Society Tk20cr
• New Navana Tk30cr
• Chalantika Jubo Society Tk31cr
• Qworld Marketing Ltd Tk15cr
• CID's Organised Crime Unit investigating 6 cases
• Dhaka metro-east of CID looking into 1 case
• Charge sheet submitted against Chalantika Jubo Society 
• Investigations in other cases at final stage

In ways reminiscent of the activities of the Destiny Group, seven organisations in the name of multi-level marketing (MLM) and multi-purpose cooperatives have swindled people out of around Tk400 crore, the Criminal Investigation Department (CID) of police has found in its investigations.

These companies have allegedly been cheating thousands of people of their hard-earned money by enticing them to make investments in shady businesses with promises of lofty returns.

According to CID sources, MLM company SPC World Limited has embezzled 150 crore from people in 10 months in the guise of operating an e-commerce business.

Another MLM company, Supan Product Limited, has allegedly swindled its customers out of Tk50 crore.

Besides, Rupsha Multipurpose Society has embezzled Tk20 crore, MLM firm New Navana around Tk30 crore and multipurpose cooperative Chalantika Jubo Society Tk31 crore. Qworld Marketing Ltd has embezzled around Tk15 crore from people, the CID claims.

According to investigators, the Organised Crime Unit of the CID has been investigating six money laundering cases filed against these companies.

After completing the probe, the CID has submitted a charge sheet in one of these cases – filed against Chalantika Jubo Society.

Investigations into the other five cases are almost done and the CID hopes to submit charge sheets against the fraudster companies within a short time.

Meanwhile, CID Dhaka metro-east has been investigating a case filed against a company that has allegedly embezzled around Tk100 crore.

Sheikh Omar Faruk, additional DIG of the CID, has stressed public awareness to prevent these kinds of cheating and said people must stay away from investing in so-called and non-existent companies by falling prey to greed.

Responding to a query, he said the CID took action whenever it was informed about any illegal activity being conducted by any company.

Mustafa Kamal, special superintendent of the CID's Organized Crime Unit, told The Business Standard that the unit has been investigating several money laundering cases filed against multipurpose societies and MLM companies.

"We've found that they have embezzled large sums of money from people through fraudulent activities," he added.

SPC World Limited, an online-based MLM organisation, launched operations last year amid the Covid-19 pandemic. In just 10 months, the company allegedly embezzled Tk150 crore from people.  Fascinated and enticed by the company's promise of earning up to Tk20,000 in guaranteed monthly income just by sitting at home, thousands of people have opened their own SPC IDs by paying an amount starting from Tk2,300 depending on the category of the IDs.

CID investigators said they have identified three people who run the company. They are Al-Amin Podhan, Sharmin and Ishak.

Supan Product Limited has embezzled Tk50 crore from its customers by promising them hefty returns on their investment, said the CID.

The company has five other subsidiaries, including Yes Dream City and Dream Girl Cosmetics. It has collected large sums of money from people to invest in these companies.

The CID has identified seven people of the company who are involved in fraud. They are   Gazi Mahiuddin, Anisur Rahman, Harun Ur Rashid, Abdul Karim, Atifur Rahman, Mahfuzur and Shipon Mia. The company is based in Dhaka.

Rupsha Multipurpose Society has swindled people out of Tk20 crore in the name of investing in land, according to the CID investigators. Signing City Multipurpose Society is a subsidiary of Rupsha Multipurpose Society.

The CID has identified four persons who run the company. They are Rasel Hawlader, Emdadul Khan, Alamgir Nasir Hawlader and Musa Hawlader. The company has 43 bank accounts, from which Tk121 crore have been withdrawn, the CID investigations have found.

New Navana, a company based in Patuakhali, has allegedly embezzled around Tk30 crore from people by collecting deposits through making promises to people of their coming by high returns.

Meanwhile, the CID has submitted a charge sheet against 20 people, including the owners and employees of Chalantika Jubo Society, in a money laundering case. The multipurpose company has embezzled Tk31 crore from people. The company is based in Khulna.

The CID on Monday arrested three fraudsters involved with Qworld Marketing Ltd from Dhaka for allegedly embezzling Tk15 crore from 52 thousand customers.