A New Zealand woman has been arrested for her part in an alleged ponzi scheme in India.
Denise Driver, 52, was arrested by along with Mohammed Kurram Iqbal, Kiran Jitendra Modi and Hithesh Modi for an alleged fraud worth 500 million rupees (about $NZ10 million), the Bangalore City Police Facebook page says.
The Times of India says the quartet lured people into investing in the YOBSN Social Media Network with the promise of high returns in US dollars, saying that if Facebook can make billions from social network, there was no reason why their investors could not do so.
It’s alleged each investor put in between 8000 and 30,000 rupees ($NZ168-$629) and were promised a 25 per cent commission.
Bangalore joint Commissioner of Police Hemanth Nimbalkar says Ms Driver was the Asia-Pacific head of the scheme, which had its head office in the United States.
He said she claimed the scheme had more than 32,000 members, including 2000 from the United States.
The quartet have been charged under three sections of the Prize, Chits, Money Circulation Scheme (Ban) Act and Section 420 (Cheating) of the Indian Penal Code.
The hotel in which the quartet were arrested as they were holding a conference with prospective investors may also face action for not keeping the Foreigner Regional Registration Office in loop over a foreigner’s presence and abetting the accused.
The Ministry of Foreign Affairs and Trade says the New Zealand High Commission in New Delhi has been in touch with Ms Driver, who has confirmed she has legal representation.
It says Ms Driver has requested privacy and will not be providing further details.