India: Ukrainians exposed in Mumbai Ponzi scam that duped hundreds of investors

Dubai: Two Ukrainian nationals, Artem and Olena Stoin, have been identified as key players behind the Torres Jewellery Ponzi scam, which has defrauded hundreds of investors in Mumbai by promising high returns on investments in gemstones, gold and silver.

The Economic Offences Wing (EOW) of Mumbai Police, leading the investigation, is working to locate the duo believed to have orchestrated the scheme, according to an NDTV report.

The fraudulent operation was run under Platinum Hern Pvt. Ltd., which offered weekly returns of up to 11 per cent to investors. Initially, payouts were made regularly to build credibility, but payments ceased on December 30, 2024. The scam came to light when Torres Jewellery’s six outlets in Mumbai abruptly closed on January 6, leaving investors in the lurch.

More than 1,500 complaints have been filed against the company, which allegedly lured investors with promises of returns on investments in moissanite stones, India Today said.

The Economic Offences Wing (EOW), which is investigating the case against the Torres Jewellers brand, will issue a Look-Out Circular (LOC) soon against Artem and Olena Stoin, who are believed to have fled the country. They, along with promoters and top executives of Torres, stand accused of swindling over Rs22 crore (Rs220 million) from investors, according to an EOW official.

Customers were also enticed with gifts, such as gemstone pendants and luxury cars, as part of lucky draws. The stores, which opened in February 2024, became a hub of protests after investors realized they had been duped.

One complainant, Pradeep Vaishya, a vegetable vendor from Nariman Point, reported a collective loss of over Rs13 crore (Rs130 million) along with seven other investors. Most of the victims belong to the lower-middle-class segment and had invested amounts ranging from a few thousand rupees to several crores.

Police have filed cases against the holding firm, its directors, CEO Tausif Reyaz, Chief Analyst Abhishek Gupta, and other senior staff.

Charges include cheating, breach of trust, and criminal conspiracy. Investigators are also probing the role of luxury cars given as prizes and the authenticity of the gemstones sold.

Vandalism and theft

Adding intrigue to the case, Torres’ official YouTube channel recently posted a video accusing Reyaz and Gupta of leading a coup and robbing the company’s stores.

The video, which shows vandalism and theft, claims the accused had been systematically embezzling funds for months and attempted to escape justice by implicating other employees.

The police continue to investigate the case, which has shaken investor confidence.

Meanwhile, victims are urging the government to intervene, with many saying they don’t want returns but only their principal investments back. Authorities are also working to track the Ukrainian suspects and recover the scammed funds.