Bengaluru: At least 183 investors in Bengaluru have been swindled out of more than Rs 41 crore after putting their money into a Hyderabad-based firm that was recently exposed as an Rs 850-crore Ponzi scheme. The victims were allegedly duped by Falcon Invoice Discounting, which lured them in with promises of high annual returns ranging from 11% to 22% on short-term investments.
Authorities have registered four FIRs in connection with the scam—two each at the Central Crime Branch’s Cyber Crime Police Station and the West CEN Police Station—according to senior police officials. DH has independently reviewed these FIRs.
Falcon Invoice Discounting claimed to operate as an intermediary for invoice discount investments, a system where businesses sell invoices at reduced rates to improve cash flow, while investors earn interest once customers clear payments. However, the company allegedly fabricated vendor profiles and falsely claimed to be affiliated with reputed firms.
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One of the Bengaluru victims, a 59-year-old ex-serviceman, lost INR 1.07 crore—his entire retirement savings. “I invested everything I had, but now I have no hope of getting it back,” he said.
Reports indicate that the fraudulent scheme had been running since 2021, deceiving over 6,000 investors across India. The Cyberabad police have so far arrested two individuals—Pavan Kumar, Vice President of Capital Protection Force Pvt Ltd and Business Head of Falcon Invoice Discounting Platform, and Kavya N, Director of Capital Protection Force Pvt Ltd and Falcon Capital Ventures Pvt Ltd. However, the masterminds behind the scheme—Managing Director Amardeep Kumar, COO Aryan Singh, and CEO Yogender Singh—are still at large.
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Investigators discovered that the company operated both an app and a website, using the names of well-known companies to lure unsuspecting investors. Instead of genuine business dealings, the firm followed a classic Ponzi model—using funds from new investors to pay earlier ones. The scam reportedly amassed INR 1,700 crore, of which only INR 850 crore was returned. The remaining funds were funneled into shell companies and used to set up various business ventures, including a cryptocurrency platform.
On February 21, the Enforcement Directorate (ED) registered an Enforcement Case Information Report (ECIR), which is equivalent to an FIR, to probe the money laundering aspects of the case. Sources within the Bengaluru police suggest that the FIRs registered in the city may first be transferred to the Criminal Investigation Department (CID) before the ED takes over, as it has already begun its own investigation.
“We suspect there are more victims,” a senior police official said. “Since the financial losses are significant, the case may first go to the CID, with the ED stepping in later.”