The Economic Offences Wing (EOW) of Thane City Police has uncovered a multi-crore Ponzi and investment fraud that duped thousands of investors—mainly working-class individuals—out of their hard-earned money.
The scam was operated by Phoenix Investments in Dombivli over the past three to four years, promising high returns and initially paying investors until early 2024. However, since then, the masterminds and their accomplices allegedly fled the city with crores of rupees, leaving offices and branches shuttered and investors in despair.
Hundreds of affected investors approached advocate Sangram Ghuge Patil seeking legal assistance. Patil said, “Hundreds of investors, mostly working-class people, invested their hard-earned money in fraudulent schemes promoted by Phoenix Investments’ Dombivli branch. A complaint was filed with the Dombivli police station, and senior officials at the EOW Thane took over the investigation.”
The EOW registered the case under the Indian Penal Code for cheating and fraud and the Maharashtra Protection of Interest of Depositors (MPID) Act. The accused include Gaurav Bhagat, Vikin Patne, Devendra Tambe, Paresh Bhoir, Darshan Mhatre, Dioesh Dandekar, and two others, along with the companies Phoenix Investments and Phoenix Financial Solution LLP, which ran the fraudulent schemes since 2021.
Using technical surveillance and human intelligence, the EOW arrested four accused: Gaurav Bhagat, Devendra Tambe, Vikin Patne, and Amol Tayde, an agent who lured investors into the schemes. All four were remanded to police custody until October 6.
EOW officials stated that efforts are underway to trace the invested funds and recover victims’ deposits. “The investigation will continue to ensure justice for investors who lost their hard-earned money in this elaborate Ponzi scheme,” an EOW spokesperson said.
The Phoenix Investments case highlights the critical need for caution among investors and vigilance against too-good-to-be-true returns, especially in small urban centres where such fraudulent schemes often thrive.
