Nizamabad: Police in Telangana’s Nizamabad district have uncovered a major financial scam, arresting two men who defrauded 125 people of Rs 8.5 crore by promising high returns on investments. ACP Nagendrachari stated that the accused, Mohammed Moiz Khan (32) and Syed Hamed Hasan (32), are B.Tech graduates. Desiring to make it big in a short time, they studied online techniques to gain the trust of their victims and created fake companies promising huge profits.
According to police, the accused developed a cryptocurrency investment app to defraud people and lured investors with promises of high returns and discounted land deals. From 2022 to 2023, they collected a total of Rs 8.5 crore from 125 individuals in Nizamabad district. Among the victims was a government teacher from Indalvai, who initially made small profits and was then persuaded to act as an agent, leading to the involvement of several others in the fraudulent scheme.
Officials stated that the two accused later failed to deliver the promised profits, prompting the teacher to file a complaint at the Indalvai police station. After a thorough investigation, police arrested Moiz Khan and Hasan and froze their bank accounts. According to police, two other gang members are still at large.
Officials stated that the investigation revealed that the fraudsters had committed similar frauds in major cities such as Delhi, Mumbai, and Kalaburagi (Karnataka) using the multi-level marketing (MLM) model. They were also involved in a land scam in Aleru, operating under the name Move On Company before fleeing.
Police have cautioned the public against investing in schemes that promise high profits in a short period of time. Officials have advised people to seek information about such companies and avoid apps or investment platforms that lack proper registration or transparency.
ACP Nagendrachari said, “This case highlights the increasing sophistication of financial frauds using technology. People need to exercise extreme caution when investing, especially in cryptocurrency and multi-level marketing schemes. Early reporting of suspicious activity can help prevent massive losses.”
He said this case warns investors to be cautious, consult financial experts before investing, and not fall for promises of quick money. He said the remaining members of the gang are being searched for.
