QNet and its franchisee firms allegedly sold products such as magnetic disks with ‘healing’ properties, herbal medicines and holiday schemes. The company is accused of using the banned ‘binary pyramid’ model in its marketing schemes, apart from duping the investors.
The FIR was registered in Mumbai in August 2013 under the Prize, Chits and Money Circulation Schemes (Banning) Act, 1978 and Maharashtra Protection of Interest of Depositors Act.
Special public prosecutor Pradeep Gharat had earlier told the court in Mumbai that Ferreira held 80 per cent shares in a franchisee of Hong Kong-based QNet.
QNet ran a ‘Ponzi scheme’, seeking investments between Rs 30,000 to Rs 7.5 lakh, the prosecutor had said, adding the investors never got the high returns they were promised.
The money earned by QNet was “laundered” and diverted out of the country, Gharat had told the court, adding that Ferreira’s interrogation was necessary to find its “destination”.
(Sourced from agencies, feature image courtesy:Iloveindia)
