Mumbai: How Torres Exploited Network Marketing to Scam Investors
The Torres scam in Mumbai has left many investors in distress as details unfold
Mumbai, India, Torres, Ponzi Scheme, Investors, EOW
Mumbai: So, there’s this wild story about a scam that’s been making waves. It all started with a police raid at a Torres showroom in the Opera House area. Turns out, a lot of folks got duped in this Torres scam.
The whole thing is getting clearer now. The parent company, Platinum Harn Pvt. Ltd., was set up just this January. They kicked off the Torres jewelry business in February 2024, and boy, did they attract a crowd! They used word-of-mouth and network marketing to pull in tons of customers.
To join the Torres club, people had to buy jewelry or Moissanite stones, starting from ₹5,000. Before they could buy, they were shown a quick seminar at the showroom. It was all about easing their worries and building trust. After the seminar, they even got a small silver ring and a ₹2,000 voucher to sweeten the deal.
But here’s the kicker: they promised some pretty tempting returns. Customers were told they could earn up to 4.2% interest on cash purchases of silver items. Online payments got 4%, and gold buyers were promised 2%. If you bought Moissanite stones, the returns could go as high as 11%, depending on how long you invested.
During Diwali, they even had a special offer that bumped those rates up by 1% for a week. It was a clever way to keep people hooked. So far, around 1,600 victims have reached out to the Economic Offences Wing (EOW) to file complaints.
This whole marketing scheme was so well-crafted that it drew in thousands, creating a massive web of investments. Now, it’s all unraveling into one of the biggest Ponzi schemes we’ve seen in a while. The EOW is still digging deeper, and the victims are just waiting for some justice.