Mohamm­ed Mansoo­r Khan was detain­ed at New Delhi airpor­t upon his return from DubaiNEW DELHI: An influential businessman was arrested by Indian police Friday over a half-billion dollar ponzi scheme that allegedly defrauded tens of thousands of mostly-Muslim investors. Mohammed Mansoor Khan was detained at New Delhi airport upon his return from Dubai, where he had fled last month after winding up his scandal-hit company. A ponzi scheme is a fraudulent investment operation that pays out returns to investors based on inflows of money deposited by other savers, and is liable to collapse if receipts dry up. Ponzi schemes often target India’s army of poor who have no financial security and fall victim to frauds that siphon off their hard-earned savings. Police are also investigating a $6 billion ponzi scam in West Bengal state, where nearly 1.5 million investors were defrauded by the Saradha Group which collapsed in 2014.

Source: The Express Tribune July 19, 2019 13:41 UTC