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Saradha Group financial scandalFrom Wikipedia, the free encyclopedia

Former type Privately owned

Industry Financial services, infrastructure management, automobiles,

manufacturing

Genre Deposit mobilising company

Fate Allegations that this consortium of companies is a Ponzi

scheme

Founder(s) Sudipto Sen

Defunct April 2013

Headquarters Kolkata, West Bengal, India

Key people Sudipto Sen, Chairman & MD

Debjani Mukherjee, Director

Kunal Ghosh, CEO, Media Div.

http://en.wikipedia.org/wiki/Saradha_Group_financial_scandal

http://www.wikilovesmonuments.in/?pk_campaign=Centralnotice

http://www.wikilovesmonuments.in/?pk_campaign=Centralnotice

http://en.wikipedia.org/wiki/File:Saradha_logo.png

Employees 5000+

Divisions Saradha Realty

Saradha Exports

Global automobileso

Saradha media group

Website saradhagroup.com

The Saradha Group financial scandal is a financial scam which was caused by the collapse of a Ponzi

scheme run by Saradha Group, a consortium of Indian companies which was believed to be running a

wide variety of collective investment schemes (popularly but incorrectly referred to as chit fund)[1][2]

[3] in Eastern India.[4] The group collapsed in April 2013, causing an estimated loss of INR 200–300 billion

(US$4–6 billion)[5][6] to over 1.7 million depositors.[7] In the aftermath of the financial scandal, the State

government of West Bengal set up an inquiry commission to investigate the collapse[8] and also set up a

fund of INR 5 billion (92 million USD) to ensure that low income investors are not bankrupted.[9] The Union

Governmentalso launched a multi-agency probe to investigate the Saradha scam, as well as other similar

Ponzi schemes.[10]

Contents

[hide]

1 Background

2 Modus operandi of Saradha

o 2.1 Financial operations

o 2.2 Building brand and non-financial businesses

o 2.3 Political patronage

o 2.4 Key people

3 Collapse and unravelling of the scam

4 Aftermath and reactions

o 4.1 State government reaction

4.1.1 West Bengal Government

4.1.2 Assam Government

4.1.3 Odisha Government

4.1.4 Sikkim Government

4.1.5 Tripura Government

o 4.2 Central government reaction

o 4.3 Political reactions and protests

o 4.4 Judicial reactions

o 4.5 Macroeconomic and microeconomic effects

5 Criminal prosecution and ongoing investigations

o 5.1 Justice Shyamal Sen Commission

6 References

Background[edit source | editbeta]

See also: Banking in India

India has a very large low-income rural population with low access to formal banking facilities.[11] A web of

parallel informal banking arose to fill the vacuum. At its centre weremoneylenders, who used to charge

exorbitant rates of interest, this practice was greatly curbed by several Moneylenders Acts enacted

by state governments in the 1950s. However, the fundamental failure to replace the role of moneylenders

gave rise to fly-by-night financial operators who ran Ponzi schemes in various disguises.[12] However

some commentators place the blame for these kinds of Ponzi schemes on greed rather than exclusion

from formal banking systems.[13]

The relatively prosperous rural economy of West Bengal had previously relied on small savings schemes

run by Indian Postal Service. However, low rates of interest in the 1980s and 90s encouraged the rise of

several Ponzi schemes in speculative ventures such as Sanchayita Investments, Overland Investment

Company, Verona Credit and Commercial Investment Company. Together, these scams eliminated close

to 10 billion INR in investor wealth.[14][15]

In spite of this history of Ponzi schemes, the continuing decline in interest rates, rapid financialisation of

household savings, lack of financial literacy and investor awareness, political patronage, absence of

adequate legal deterrence, and regulatory arbitrage encouraged the growth of similar companies.

[16] These companies either raised their funds through legitimate channels such as collective investment

schemes, non-convertible debentures and preference shares; or illegitimately through hoax financial

instruments such as teak bonds or potato bonds or fictitious ventures in agro-export, construction,

manufacturing etc. Complaints have been filed against more than 8 out of every 10 multi-level marketing

and finance schemes in West Bengal, giving the state the sordid title of 'Ponzi capital of India'.[17] It is

estimated that these ponzi funds have all-together amassed around INR 10 trillion (short scale) (200

billion USD) from unsuspecting depositors in Eastern India.[18]

Modus operandi of Saradha[edit source | editbeta]

Financial operations[edit source | editbeta]

The companies which made up Saradha Group were incorporated in 2006. Its name is

a cacography of Sarada Devi , a highly revered spiritual icon of the region and the wife and spiritual

counterpart of Ramakrishna Paramahamsa, a nineteenth-century mystic of Bengal.[19] This association

gave Saradha Group a veneer of respectability.[20]

Like all Ponzi schemes, Saradha Group promised astronomical returns in fanciful but credible

investments.[21] Its funds were sold on commission by agents who were recruited from local rural

communities. As much as 25–40% of the deposit was returned to these agents as commissions and

lucrative gifts to quickly build up a wide agent pyramid.[22]To keep ahead of regulators, the group used a

nexus of companies to launder money.[23]

Initially, the front-line companies collected money from the public by issuing secured

debentures and redeemable preferential bonds.[24] However, under Indian Securities regulations and

section 67 of the Indian Companies Act, a company cannot raise capital from more than 50 people

without issuing a proper prospectus and balance sheet. Its accounts must be audited. It must also have

explicit permission from the market regulator Securities and Exchange Board of India (SEBI).[25]

SEBI first challenged Saradha Group in 2009. Saradha Group responded by opening as many as 300

new companies to create more cross-holdings. This created an extremely complex tiered corporate

structure which made it difficult to pin blame on any one company.[26]

However, SEBI persisted in its investigation through 2010.[27] In response, Saradha Group changed its

methods of raising capital. In West Bengal, Jharkhand, Assam andChattisgarh, it now ran variations of

collective investment schemes (CIS), such as tourism packages, forward travel and hotel

booking timeshare credit transfer, real estate, infrastructure finance, and motorcycle manufacturing[28]

[29] The investors were rarely informed about the true nature of the investments. Instead, many investors

were told only that they would get high returns after a fixed period.[30] To other investors, the investment

was fraudulently sold as a form of 'chit fund'. Under the Chit Fund Act (1982), chit funds are regulated by

state governments rather than SEBI.[31]

After SEBI warned the state government of West Bengal about Saradha Group's apparent chit fund

activities in 2011,[32] Saradha Group changed its methods again. This time, it acquired and sold large

numbers of shares of various listed companies, siphoning off the proceeds of the sale to accounts which

have not yet been identified.[33]

By 2012, SEBI was able to identify the group's activities as CIS, not chit fund, and demanded that it

immediately stop operating its investment schemes until it received proper permission from SEBI.

[32] However, Saradha Group ignored SEBI, and continued to operate in the same manner until it

collapsed in April 2013.[34]

Building brand and non-financial businesses[edit source | editbeta]

Like previous Ponzi schemes, Saradha Group invested strongly in building its brand. With enormous

funds at its disposal, Saradha invested in high visibility sectors, such as the Bengali film industry,[35] where

it recruited famous actress and Trinamool Congress (TMC) Member of parliament Satabdi Roy as its

brand ambassador.[36]

Saradha Group also recruited Kunal Ghosh , another Trinamool Congress Member of parliament, to act as

the CEO of the media group.[36] Under Kunal Ghosh, the group went on an unprecedented spree of buying

and establishing local television channels and newspapers. By 2013 it employed over 1500 journalists

and owned eight newspapers in five languages: Bengal Post, Seven Sisters Post (English

dailies), Kalom (Bengali daily), Prabhat Varta (Hindi daily),[37] Ajir Dainik Baturi (Assamese daily),

[38] Sakalbela, Azad Hind [39] and Parama (Bengali dailies). It also owned two Bengali news channels (Tara

Newz and Channel 10), two Bengali general entertainment channels (Tara Muzic andTara Bangla)[40] and

one FM radio station.[41]

In 2011, Saradha Group bought Global Automobiles, a heavily indebted motorcycle company, to front the

latest version of its Ponzi scheme. Even though the company immediately stopped most production, it

kept 150 workers on payroll who "pretended to work whenever truckloads and busloads of prospective

depositors of Saradha Realty visited the plant for a first-hand check before investing."[42] It also bought

similar shell companies like West Bengal Awadhoot Agro Private Ltd in North 24-Parganas and Landmark

Cement in Bankura to showcase them to agents and depositors and convince them that the Saradha

Group had diversified interests.[43]

As part of its corporate social responsibility program, Saradha Group donated motorcycles to the Kolkata

Police. On 19 July 2011, it persuaded Mamata Banerjee , the Chief Minister of West Bengal to launch its

ambulances and motorcycles for the Jangalmahal area of West Midnapore.[44]

To further etch itself in the socio-cultural milieu of Bengal, Saradha Group invested in football rivals and

the best known football clubs in Bengal: Mohun Bagan A.C. (INR 18 million in 2010–11) and East Bengal

F.C. (INR 35 million since 2010).[45][46] The group also generously sponsored various Durga

Puja celebrations organised by local political leaders.[47][48]

Political patronage[edit source | editbeta]

Several political leaders received financial support from Saradha Group, including several Trinamool

Congress Members of Parliament. Trinamool Congress is the incumbent ruling party of West Bengal.[21]

Member of Parliament Kunal Ghosh drew a salary of INR 1.6 million per month from Saradha Group.

Member of Parliament Srinjoy Bose, son of Swapan Sadhan Bose , was directly involved with the media

operations of Saradha Group.[49] Transport Minister Madan Mitra headed the employees' union of Saradha

Group, and publicly encouraged people to invest their savings with the company.[50] Sudipto Sen

reportedly spent Rs 18.6 million to buy paintings done by Mamata Banerjee, whose government later

issued a notification that public libraries should buy and display newspapers of Saradha group.[51] The

group also had financial dealings with Ganesh Dey, the confidential assistant of the finance minister of the

earstwhile Left Front government.[52]

Politicians also benefited from Saradha Group outside West Bengal. The Health and Education Minister

of Assam, Himanta Biswa Sarma , may have profited personally from the Ponzi scheme.[53][54] It is possible

that this Ponzi scheme only survived for so many years because of its heavy political patronage.[55]

Key people[edit source | editbeta]

Sudipto Sen is the chairman and managing director of the Saradha

Group. He was arrested in Kashmir on 23 April 2013, after having been

on the run for over a week.[56]

Sen is described as a soft-spoken, charming, yet forceful orator. He

is in his mid-50s. In his youth, he had a different name,

Shankaraditya Sen, and was part of the Naxalite movement in West

Bengal. He changed his name to Sudipto Sen and may have had

plastic surgery sometime in the 1990s,[57] after which he became

associated with land development projects in South Kolkata. The

land bank he formed at the turn of the century became the initial

vehicle for enticing early customers into his ponzi scheme.[58]

Sen may be the son of Bhudeb Sen, who used to run a chit fund

called Sanchayani in the 1980s. It went broke in 2003.[57]

Debjani Mukhopadhdhay is one of the executive directors of

Saradha Group who had the power to sign cheques on behalf

of the group.[59] She was arrested together with Sudipto Sen.[60]

Debjani is in her early 30s. Her early training was as an air hostess.

Although she originally joined Saradha Group in 2010 as a

receptionist, she rose rapidly to be the 'number two' in the group

hierarchy.[61] She was well known locally for her generosity to her

community.

Collapse and unravelling of the scam[edit

source | editbeta]

The earliest public warnings about the reckless and fradulent

CIS in West Bengal started in 2009, from members of

parliament Somendra Nath Mitra and Abu Hasem Khan

Choudhury and West Bengal Consumer Affairs

Minister Sadhan Pande .[62] However, apart from the SEBI

investigation, no executive actions were taken at this time.

On 7 December 2012, RBI governor Duvvuri Subbarao stated

that the West Bengal government should initiate suo motu

action against companies which were indulging in financial

malpractices.[63] By that time, the Saradha Group Ponzi

scheme was already beginning to unravel.

In January 2013, the cash inflow of Saradha Group was less

than its cash payouts for the first time. This outcome is

inevitable in a Ponzi scheme which is allowed to run full

course. Although Sudipta Sen tried to calm uneasy depositors

and agents,[64] the tide had irrevocably turned.

In a letter dated 6 April 2013, Sudipto Sen wrote a 18-page

confessional letter to Central Bureau of Investigation,[65] in

which he admitted that he had paid large sums of money to

several politicians.[66] He also stated that TMC leader Kunal

Ghosh had forced him to enter into money-losing media

ventures and blackmailed him into selling one of his channels

at below market price.[65][67] After posting this letter on 10 April,

Sen fled.

In his absence, the Ponzi scheme unravelled into a full-blown

crisis. On 17 April, approximately 600 collection agents

claiming to be associated with Saradha Group assembled at

the headquarters of TMC and demanded government

intervention.

The mood of despondency quickly spread across Bengal. As

described by a Times of India interviewee, "'The entire

Dakshin Barasat today looks like it was hit by a cyclone. Every

home has a bankrupt depositor or a fugitive agent. People who

were friends have turned enemies. Happy households have

become miserable. Students have stopped going to school.

Traders have lost interest in opening shutters. There is a

sense of treachery that has replaced the warmth of a

neighbourhood. Suddenly everything has become vicious."[64]

By this time, the Saradha Group financial scandal had

colloquially become known as "Bonzi". This is a wordplay on

the words Ponzi and Bengal.[68]

On 18 April, an arrest warrant was issued for Sudipto Sen.

[69] By 20 April, the news of potentially the largest Ponzi

scheme ever seen in India had become ongoing headline

news in West Bengal, and then front-page news nationally.[70]

[71][72] After a massive manhunt, Sudipto Sen, Debjani

Mukhopadhdhay, and Arvind Singh Chauhan were arrested

in Sonmarg, Kashmir on 23 April 2013.[73]

On the same day, SEBI stated that both chain marketing and

forward contracts are forms of CIS, and officially asked

Saradha Group to immediately desist from raising any further

capital and return all deposits by three months.[32][74]

Aftermath and reactions[edit source | editbeta]

State government reaction[edit source | editbeta]

West Bengal Government[edit source | editbeta]

As a reaction to the unravelling of the enormity of the scam, on

22 April 2013 West Bengal government announced that a four-

member judicial inquiry commission headed byShyamal

Kumar Sen, retired Chief justice of Allahabad High

Court would probe the scam. Mamata Banerjee is also

reported to have commented "ja gechhey ta gechhey

(whatever has gone has gone)".[75] On 24 April 2013, Mamata

Banerjee announced a controversial Rs 500-crore relief fund

for the low income depositors of the Saradha Group,

introducing a 10 per cent additional tax on tobacco products to

raise the money and in jest asked smokers "to light up a little

more" to quickly fill up the requisite fund.,[76][77] a comment that

displeased anti-tobacco groups.[78] The propriety of the fund

was later questioned by Governor of RBI.[79] The West Bengal

government also set up a Special Investigation Team (SIT),

with officers drawn from WB CID and Kolkata Police, to

expeditiously probe the criminal investigation.

The State Government has decided to repeal an existing Bill

passed by the Left Front Government in 2009, which have not

received the nod of the President of India.[80][81]On 30 April

2013 the new Bill titled, The West Bengal Protection of Interest

of Depositors in Financial Establishments Bill, 2013, has been

passed in a two-day special session of the West Bengal

Legislative Assembly, having provisions for retrospective

effect, search and seizure, enhanced penalties, establishment

of special courts, confiscation of property.[82][83][84] On 2 May

2013, after complaints from depositors, state government

ordered police to conduct search and seizure at offices of two

companies MPS Greenery Developers Ltd and Prayag

Infotech Hi-Rise Ltd, both of whom were running unregistered

collective investment schemes similar to Saradha group.[85]

[86] By 6 May 2013 police had also arrested directors of two

more similar ponzi companies ATM group[87] and Annex

Infrastructure Pvt Ltd[88] on charges of defrauding depositors.

On 8 May 2013, Mamata Banerjee stated that West Bengal

was actively considering setting up a government backed

small savings fund to encourage small depositors to invest in it

rather than in ponzi scams.[89] However doubts have been

raised if a cash starved state with high debt burden has the

financial acumen or political will to independently administer

such a fund.[90]

On 23 May 2013, Chief Minister, Mamata Bannerjee indicated

the willingness of West Bengal Government to take over

Saradha owned TV channels Tara News and Tara Muzic,

which had earlier been sent under administration by Calcutta

High Court.[91]

Assam Government[edit source | editbeta]

On 4 April 2013, the Assam Legislative Assembly unanimously

passed the Assam Protection of Interests of Depositors (in

Financial Establishments) (Amendment) Bill, 2013 to enhance

the protections available to depositors and curb fraudulent

financial schemes.[92] Soon after the Saradha scam, Assam

Government sent the bill to Governor for his approval so that

the bill may be forwarded to President of India for his assent.

[93] On 22 April 2013 Assam Police sealed five offices of

Saradha Group amid protests by depositors, agents and

employees and accusations that a minister, a former DGP and

government officials had facilitated the group's business

ventures in the state of Assam.[94] Unlike in West Bengal where

the probe is based on FIRs filed by defrauded depositors, the

Assam Government suo motto registered 222 cases against

128 companies including Saradha Group, Rose Valley, Unipay

2U, Jeevan Suraksha, Prayag, Abyss Assam Group Co, Basil

International Ltd., Alliance Vision Marketing Pvt. Ltd and

Daffodils Group of Companies after widespread protests

rocked Assam. In 17 cases, charge sheets have been filed

against 42 persons belonging to 15 companies while

altogether 303 persons have been arrested for swindling

public money. The government had also seized nearly Rs

9.4 million in cash from the arrested and 106 bank accounts

with total deposit of Rs 240 million have been frozen while a

number of plots totalling more than 99 bighas, besides

buildings, have been identified and necessary steps are being

taken for their attachment.[93] On 6 May 2013 Assam handed

over the investigation of the scam to CBI.[95]

Odisha Government[edit source | editbeta]

On the basis of complaints filed by over 6000 depositors

(mainly from districts adjoining Bengal), the Economic Offence

Wing (EOW) of the Crime Branch of Odisha Police registered

criminal cases against Sudipto Sen and Saradha Group; on 3

May 2013 Odisha police had seized documents and sealed the

local offices of Saradha group.[96][97][98]

Sikkim Government[edit source | editbeta]

On 4 May 2013, based on complaints filed by

depositors/investors under Sikkim Protection of Interests of

Depositors Act, Sikkim Police conducted raids

on Gangtok office of Kolkata head-quartered Rose Valley

Group, which was also running unregistered collective

investment schemes similar to Saradha group.[99][100]

Tripura Government[edit source | editbeta]

On 9 May 2013, the Government of Tripura handed over all

the cases involving deposit-collecting companies in the state to

CBI.[95]

Central government reaction[edit

source | editbeta]

In March 2013, Union corporate affairs minister Sachin

Pilot said in the Lok Sabha that his ministry has received

complaints against West Bengal's Chakra Infrastructure, icore

E-Service, MPS Group, Prayag Group, Rose Valley Group,

Tower Infotech, Vibgyor Group, URO Group, Saradha Group

and many others for their involvement in Ponzi or multi-layer-

marketing schemes.[15] However no action was taken, it was

only after the unravelling of the scam that a host of measures

were announced. On 25 April 2013,Income Tax

department and Ministry of Corporate Affairs started separate

investigation into Saradha Scam and the other similar ponzi

funds masquerading as NBFCs or CIS.[101] On the same day

the Enforcement Directorate (ED) registered a money

laundering case, under the provisions of the Prevention of

Money Laundering Act (PMLA), at its Guwahati office as the

Assam police has registered an FIR against the Saradha

group to probe the allegations of financial irregularities by

numerous depositors against it.[102] On 1 May 2013,

commenting on the regulatory loopholes, the Chairman of

SEBI remarked that 'there should be one single regulator for

entire collective investment schemes.'[103]

On 7 May 2013, the Union Government set up an inter-

ministerial group with members from corporate affairs ministry,

SEBI, Reserve Bank of India and officers from the

departmental of financial services. The group is supposed to

unify the regulations of investment schemes by NBFCs, banks

and companies, which at present are governed by different

laws and regulations leading to regulatory loopholes etc.[104]

In light of the scam, SEBI requested sweeping powers to

investigate and prosecute any fraudulent collective investment

schemes.[105] In August 2013, Central Government amended

the SEBI Act and gave SEBI powers to search and seize

without prior magisterial permission to crack down on illegal

money collection schemes.[106][107]

Political reactions and protests[edit

source | editbeta]

There have been ongoing street protests around West Bengal,

sometimes it has resulted in ransacking of offices of various

ponzi funds.[108] The crash of the ponzi scheme and the

publication of the letter written by Sudipto Sen led to a barrage

of cross party accusations, CPM accused TMC of hobnobbing

with the 'chit fund', TMC on the other hand alleged that Union

Minister of Finance's wife Nalini Chidambaram had taken

lawyers fee from Saradha Group to incorporate its companies

and should be investigated,[109] TMC also blamed CPM for

letting ponzi funds grow in Bengal.[110] CPM demanded that the

investigation should be done by CBI as many TMC leaders are

involved in the scam thus an independent probe by state

agencies is impossible.

As per news media at least fifteen agents/depositors[111][108][112]

[113][114][115][116][117][118] and six executives/directors of various

money pooling companies have committed suicide in the

aftermath of the scandal.[119][120][121]

Judicial reactions[edit source | editbeta]

On 22 April 2013, Public Interest Litigation (PIL) was filed

in Guwahati High Court , by RTI activist Akhil Gogoi against

Saradha and other such chit funds and in Calcutta High

Court by advocate Basabi Roy Chowdhury seeking CBI

investigation against the Saradha Group and other chit-fund

companies.[122] On 25 April, responding to the PIL, a division

bench of Calcutta High Court comprising Chief Justice Arun

Kumar Mishra and Justice Joymalya Bagchi said that since the

ramifications of the scam included other states, a central

agency would, perhaps, do justice to the investigation.

However it gave state government one week to submit its

investigation report to see if the probe is conducted in a fair

manner.[123]

On 7 May 2013, Calcutta High Court appointed a three

member administrator group to run Tara News and Tara

Muzic.[124]

Macroeconomic and microeconomic effects[edit source | editbeta]

Graph shows the fall of savings in government schemes with the rise of

ponzi funds (figures on y axis are in Crores INR)

Companies illegally mobilising deposits diverted considerable

funds (estimated to be around INR 240 billion in the last three

years) from small savings funds promoted by state

government. Official data show a steady slide in small-savings

http://en.wikipedia.org/wiki/File:Fall_of_small_savings_due_to_ponzi.png

http://en.wikipedia.org/wiki/File:Fall_of_small_savings_due_to_ponzi.png

deposits and a spurt in withdrawals, which left a thin slice for

the state government to borrow from to make ends meet. This

had ripple effect on the overall macroeconomic situation of the

state, as because instead of being used by government for

public purpose the money went into ponzi schemes which

either were siphoned off to foreign locations or were put to use

for private gains.[125]

On microeconomic front it is feared that legitimate Non-

banking financial companies and micro finance institutions

would be stigmatised and would lead to a vicious cycle of low

depositor trust, higher interest rates, lower lending and a

localised credit crunch.[126] Furthermore as the majority of the

depositors in Saradha group came from the lowest economic

strata, the loss of the investment would result in a further

decrease in social mobility.[127] On the positive side, the scam

has drawn attention on similar illegal deposit mobilising

companies which are facing increasing regulatory heat.[128]

[129] Many such companies which have been following

variations of time share travel schemes on which there are

little clear regulations[130] are trying to register as cooperative

societies to continue their financial operations.[131]

Criminal prosecution and ongoing investigations[edit source | editbeta]

FIR has been filed against Sudipto Sen and Kunal Ghosh .

[132] Around 6 officials from Saradha Group have been arrested.

Numerous others from various illegal ponzi funds have also

been arrested in several districts of West Bengal.[133] The

investigation is being headed by detective department

of Bidhannagar police . The general ambit of investigation has

also widened to include other ponzi funds which has scripted

rags to riches stories for their promoters.[134] Kunal

Ghosh along with other ponzi fund officials from Saradha are

being questioned by police to determine the true assets of the

company and other facets of the fraud.[135]

On 30 April 2013, Central Bureau of Investigation (CBI) started

investigation into the scam in Assam at the request of the state

government.[136][137] It has been indicated byChief Minister of

Tripura that Tripura may also order CBI probe into Saradha

chit fund scam.[138] The Government of Odisha ordered the

Crime Branch of Odisha Police to start investigation on the

Saradha scam.[139]

Justice Shyamal Sen Commission[edit

source | editbeta]

By mid-August 2013, Justice Sen Commission finished its

initial compilation of the list of claimants. Around 1.74 million

depositors filed claims with the Commission. Out of which 83

per cent invested Rs 10,000 or less.[140] The Commission

recommended the state government to sell the assets of the

company and proportionally distribute it among duped

investors.[141]

References[edit source | editbeta]

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2013.

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2013.

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[hide]

V

T

E

Scams and confidence tricks

Terminology

Confidence trick

Error account

List of confidence tricks

Shill

Sucker list

Conman

Notable scams and

confidence tricks

Advance fee fraud

Art student scam

Badger game

Bait-and-switch

Black money scam

Bogus escrow

Boiler room

Charity fraud

Clip joint

Coin rolling scams

Drop swindle

Embarrassing cheque

Employment scams

Fiddle game

Fine print

Fodder scam

Foreclosure rescue scheme

Foreign exchange fraud

Fortune telling fraud

Get-rich-quick scheme

Green goods scam

Hustling

Intellectual property scams

Kansas City Shuffle

Long firm

Miracle cars scam

Mock auction

Patent safe

Pig in a poke

Ponzi scheme

Pump and dump

Pyramid scheme

Reloading scam

Shell game

Sick baby hoax

Slavery reparations scam

Spanish Prisoner

Strip search prank call scam

Swampland in Florida

Telemarketing fraud

Gem scam

Thai tailor scam

Thai zig zag scam

Three-card Monte

Trojan horse

White van speaker scam

Work-at-home scheme

Internet scams and

countermeasures

Advance fee fraud

Avalanche (phishing group)

Click fraud

Computer crime

CyberThrill

DarkMarket

Domain slamming

Email authentication

Email fraud

El Gordo de la Primitiva Lottery International Promotions Programmes

Employment scams

Internet vigilantism

Lottery scam

PayPaI

Phishing

Referer spoofing

Ripoff Report

Rock Phish

Romance scam

Russian Business Network

SaferNet

Scam baiting

ShadowCrew

Spoofed URL

Spoofing attack

Stock Generation

Cramming (fraud)

Website reputation ratings

Whitemail

Pyramid and Ponzi schemes Aman Futures Group

Dona Branca

Caritas

Bernard Cornfeld

Foundation for New Era Philanthropy

High-yield investment program (HYIP)

Investors Overseas Service

Bernard Madoff

MMM

Make Money Fast

Petters Group Worldwide

Pyramid schemes in Albania

Reed Slatkin

Saradha Group

Scott W. Rothstein

Stanford Financial Group

Confidence tricks in the media

Books and literature

Fictional con artists

Television and movies

See also: List of con artists

List of confidence tricks

List of Ponzi schemes

Categories:

Pyramid and Ponzi schemes

Corporate scandals

Scandals in India

2013 scandals

2013 in India

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