What began as a localized online trading scam in Kavali, Nellore district, has escalated into a multi-state fraud orchestrated by Mohammad Subhani, who posed as a financial consultant.
Investigations reveal that Subhani’s operations spanned Andhra Pradesh, Telangana, and Karnataka, with links to earlier scams in Makthal, Hyderabad, Rajahmundry, Guntur, and several locations in Karnataka. In Makthal alone, victims reportedly lost nearly Rs200 crore.
The scam came to light after Makthal MLA Vakiti Srihari contacted Kavali MLA D Venkata Krishna Reddy on behalf of constituents who had been duped. Several Makthal residents subsequently travelled to Kavali to report their experiences.
In Kavali, Subhani ran ‘Ananthartha Associates’ from a rented office at Marrichettu Girijan Colony near the town. The firm lured middle-class investors, tribal communities, and small business owners with promises of high returns through stock market trading and online investments, which later emerged as a Ponzi scheme.
Authorities are continuing their probe to uncover the full network of investors and accomplices involved.
