In a significant breakthrough, the Mumbai Crime Branch has arrested the alleged mastermind of a ₹50 crore Ponzi scam that defrauded nearly a thousand investors over several years. The accused, Deepak Kumar Jain (65), had been on the run since the scam unraveled earlier this year, leaving a trail of financial ruin and fear.
The Rise of a Deceptive Business
Police officials revealed that Jain operated the scam under the guise of a stationery and office supplies business. His companies, AJ Enterprises and AJ Copier, promised investors extraordinary returns of up to 15% per month on their investments.
Victims were lured by agents who claimed their money would be invested in a thriving business. The operations appeared legitimate at first — with physical office addresses, business registrations, and even company websites. Investors were handed fake receipts, statements, and agreements to strengthen their trust.
How the Ponzi Scheme Worked
Much like classic Ponzi scams, the operation paid early investors using money collected from new recruits. As word spread about the high returns, more people invested — often through agents, personal contacts, and social networks. Some even invested by selling property, pawning gold, or taking loans.
When payments began to slow and defaults became frequent, worried investors started demanding their money back. Those who protested faced threats and even physical assault, as uncovered by the Crime Branch through videos and messages recovered from the accused’s phones.
Crackdown and Arrests
The investigation picked up pace last week when the police arrested three company directors: Ankit Jain, Hetul Ranka, and Omkar Singh. Their interrogation led to crucial evidence, including a network of over 30 bank accounts across 12 banks, linking directly to the fraud.
Deepak Kumar Jain was finally traced to a hideout in Mulund, Mumbai, and taken into custody on Thursday evening. The police confirmed that he had been coordinating efforts to destroy evidence and evade arrest while on the run.
So far, transactions worth nearly ₹49 crore have been identified, with authorities working to freeze accounts and recover assets. Over 950 victims have come forward, and police expect more complaints in the coming weeks.
Growing Concerns Over Ponzi Scams
This case adds to a string of financial frauds surfacing in Mumbai recently. Just last month, a ₹97 crore grain trading scam and a ₹67 crore corporate fraud involving a well-known business family made headlines.
Mumbai Police officials have urged citizens to remain cautious about investment offers promising unusually high returns, especially those routed through informal channels or without proper documentation.
The Economic Offences Wing (EOW) and Enforcement Directorate (ED) are also being brought in to investigate money laundering and possible political connections to the case. Legal experts predict this could be one of the city’s largest financial crime cases in recent years.
As of now, Deepak Kumar Jain remains in police custody while investigators continue to trace the missing funds and identify additional accomplices.