Nirav was really good at persuasion. He devised a plan to dupe people and earn quick capital, then get back to the market and slowly accumulate his wealth again. Since he was so famous, so was his gain and loss story. He kept talking to everyone and gaining their sympathies. Whoever he talked to, he recited his story of how he came from a small town and learned the ways of the big city and earned a lot of money with his wits and lost it all due to the market crash.
He slowly started evaluating the plan by checking how much one is willing to invest and the risk appetite of the people around him. He won the trust of a few of them who were looking for instance money. He started feeding them his multi-million dollar plan of developing a township. He showed them the elaborate plan of developing a township with the help of well-known infrastructure company. He forged documents for land, building layouts, plans, agreements, MOUs etc. He knew verification of such documents would be a difficult task for a common man.
Once he got them interested in the plan, he proposed early partnerships for investment in this venture and in return a large real estate will be allocated to them with market price 3 times the price they are investing. Also, the investors will get 5x at the end of the term for all their investment. If at all due to any circumstances, the company defaults or is unable to pay back then the real estate can be liquidated and money can be recovered at twice the rate of buying it. It was a win win situation!
In addition to that, all early investors who will bring in more investors would get a 25% of the new investors invested amount as instant bonus. This way he caught the attention of the investors and also of those who knew people who can invest.
The scheme became instantly famous and getting 25% of the invested money back instantly made it look like a really good deal. Nirav found many willing to ok invest as well as find more investors. Months passed by and those who had put their money in the scheme started enquiring about their returns. Nirav knew it was time to start collecting all his accumulated wealth and make an escape plan. If he stayed longer his plan will be exposed and he might face prosecution. He had enough wealth to fly to a foreign country and settle there. So he made a complete itinerary and visa processing for the same.
Sameer was one of the investors in Nirav’s Ponzi Scheme and he too, like many others was not getting any reply to his queries about his returns from Nirav. Little did Nirav know, Sameer worked in the document verification department of the visa processing company in which Nirav sent his application. When he saw the documents, Sameer knew Nirav was planning on making a run for it and if not stopped now he will fly away and become impossible to chase. Sameer quickly called his lawyer and sent Nirav a notice. He also filed charges against Nirav for committing fraud. Due to this, Nirav’s visa got rejected and he was kept under surveillance of the local police authorities.
The news spread like wildfire and it was estimated that Nirav’s Ponzi scheme was upwards of Rs. 400 crores. He was prosecuted and was put behind the bars.
Moral of the story:
Never lie to someone who trusts you and never trust someone who lies you