The Enforcement Directorate (ED) has registered an Enforcement Case Information Report (ECIR) under the Prevention of Money Laundering Act (PMLA) in connection with the Torres Ponzi scheme case. The case involves allegations of large-scale financial fraud, where investors were enticed with promises of high returns, only to later uncover the scheme's fraudulent nature.
The ED’s case is based on an FIR filed by the Shivaji Park police in Mumbai. The complainant, 31-year-old vegetable vendor Vaishya, revealed that approximately 1.25 lakh individuals had invested in Torres, with initial claims involving Rs 13.85 crore from 66 investors. The investigation was subsequently transferred to the Economic Offences Wing (EOW) of the Mumbai Police. Preliminary findings suggest the total investments may exceed Rs 100 crore, with sources estimating the fraud to be as high as Rs1,000 crore.
The ED’s investigation focuses on the money laundering aspect, examining how the fraudulent funds were transferred and laundered, including foreign remittances involving Platinum Hern Pvt Ltd, which began its operations in February 2023. Officials are investigating the flow of funds and scrutinizing the involvement of shell companies and intermediaries that allegedly facilitated the illegal transactions. The investigation revealed that the scheme operated through a complex network of shell companies and intermediaries, designed to obscure the origins and movement of the ill-gotten wealth.
One of the major allegations revolves around investors being encouraged to make cash investments, which were then collected in Dadar and converted into USDT (Tether/cryptocurrency) for illegal transfer abroad via hawala channels.
Torres, run by Platinum Hern Pvt Ltd, allegedly floated multiple schemes offering weekly interests, considered ‘too good to be true’ with around 500 per cent annual interest on investments. Initially, investors were promised returns regularly, but Torres began defaulting in December last week.
Investigation revealed that stones priced at Rs500–Rs 1,000 were falsely marketed as high-value gemstones and sold at exponentially higher prices. Not only this, but the accused also created a website to claim that the stones they sold were valuable. The website contained exaggerated information about these fake gemstones, portraying them as precious. This website was allegedly created by Ukrainian fraudsters.
The EOW (Economic Offences Wing) investigation has found that this scam was a conspiracy orchestrated by Ukrainian nationals.
The EOW investigation revealed that 10 foreign nationals involved in the case are currently absconding, and Look Out Circulars (LOCs) have been issued against them. However, most of them have already fled the country. According to the EOW, the alleged mastermind behind this scam is Olena Stoin.
An official stated, "The accused had meticulously planned the execution of this scam, and as per their strategy, they intended to flee the country during Christmas. Their visas are set to expire by next month, and their plan was to carry out the scam until the end of 2024 and escape under the guise of Christmas holidays. Traveling abroad during Christmas would raise no suspicions, and that is exactly what they did."
On January 6, thousands of aggrieved investors gathered at Torres' jewellery store showrooms in Dadar, Mira Road, and APMC Navi Mumbai, demanding the overdue payments. The protests led to the filing of an FIR that day, which reported Rs 13.48 crore in fraud, involving 66 investors. Further investigations revealed that over 1.25 lakh people had been affected, with an estimated fraud amount reaching Rs 1,000 crore.
The case was subsequently transferred to the Mumbai Police EOW, with additional FIRs filed by the Navghar police in Mira Bhayander, Rabodi police in Thane, and APMC police in Navi Mumbai. The authorities have made several arrests, including Torres’ general manager, Taniya Xasatova (alias Tazagul Karaxanovna Xasatova), director Sarvesh Ashok Surve, and store in-charge Valentina Ganesh Kumar. The Mira Bhayandar Vasai Virar Police have also apprehended several individuals, including Lakshmi Yadav, accused of renting office space in Mira Road, supervisor Nitit Lakhwani, and manager Kaiser Khalid Sheikh.
How the Scam Began
According to Reyaz, one of the wanted accused, the scam took root in February 2023 after he was introduced to two Ukrainian nationals, Oleksandra Tverdokhlib and Oleksandr Borovyk, by a consultant named Armen. The Ukrainians expressed interest in launching a jewelry business in India. Soon after, two more Ukrainians, Olena Stoin and Oleksandr Zapichenko, joined the scheme.
Reyaz’s letter to authorities alleges that Olena Stoin, a key mastermind, was previously involved in B2B jewelry scams in Ukraine and Turkey. She allegedly forged an Aadhaar card using falsified Indian documents, which Reyaz attached to his complaint. The Ukrainian group laid the groundwork by forming Platinum Hern Pvt Ltd, recruiting Indian directors as the public face, and discreetly managing operations themselves. They opened bank accounts and acquired properties, including showrooms in Dadar, Mira Road, Kalyan, Kandivali, and Navi Mumbai.
In February 2024, the first showroom under the "Torres" brand was launched. Customers were lured with a multi-level marketing (MLM) cash-back scheme promising weekly returns on jewelry purchases and attractive referral bonuses. Daily seminars were conducted to expand the customer base.
Reyaz further claimed the scam escalated when he and a colleague were coerced into signing fraudulent loan documents under threats of violence. He alleged that his photograph was circulated on social media, falsely portraying him as the company’s CEO to mislead authorities and shield the actual culprits.
