New Zealand woman among four held in MLM racket

Admin   |   05 December, 2014   |   1281   |   3980

Bengaluru: Unearthing an international online multi-level marketing racket, city police have arrested four persons, including a woman New Zealand national, for allegedly collecting about Rs 50 crore illegally using social media platform to lure people to join their web-based company.

The four arrested have been booked under sections of the Prize Chits and Money Circulation Scheme (Ban) Act and Indian Penal Code section 420 (cheating), police said today.

"We have arrested four persons including a New Zealand national for illegally collecting Rs 50 crore through social media network," a City Crime Branch (CCB) statement said.

Acting on a tip-off, the CCB sleuths raided a hotel room here yesterday where the accused were explaining, advertising and collecting enrolment fee from 'victims' of "YOBSN Social Media Network MLM company", it said.

Action was also being proposed against the hotel for not sending Form-C to Foreigner Regional Registration Offices (FRRO) and allegedly abetting the accused, police said.