Mumbai: Two Ukrainian nationals have been identified as the masterminds behind the Ponzi scam that defrauded hundreds of investors in Mumbai by promising substantial returns on their investments, media reports said.

The Economic Offences Wing (EOW) of the Mumbai Police, which is investigating the Torres jewellery scam, has found evidence allegedly proving Artem and Olena’s role in devising a scheme to lure investors with promises of high returns on gemstones, gold, and silver, reported NDTV.

According to sources, the duo played a key role in strategising how to exploit people’s trust.

The police are also investigating the 14 luxury cars distributed as lucky draw prizes to investors, which were reportedly used as a ploy to attract more participants.

Last week, six Torres jewellery stores suddenly shut down, leaving hundreds of investors in shock.

The stores had collected crores of rupees from individuals under a scheme that promised high returns.

Police have filed a case against the holding company, Platinum Hern Private Limited, along with its directors, CEO, general manager, and a store in-charge. Charges include cheating and criminal conspiracy.

The Torres outlets, launched in February 2024 at six locations in and around Mumbai, sold gemstone jewellery and offered a bonus scheme.

Under this scheme, customers who invested Rs1 lakh were given a pendant with a moissanite stone worth Rs 10,000, which customers have now realised were fake.

Investors were promised 6% annual returns distributed weekly, later increased to 11%. While some payouts were received in the past year, they stopped two months ago, leaving investors devastated.

Just a week before the closure, Torres released a video on YouTube announcing an 11% interest rate for investments made before January 5, after which the rate would be reduced.

The company even incentivised cash payments by offering an additional 0.5% interest.

However, on January 6, the stores shut down, and investors realised they had been duped.

The victims of the scam include people from lower-middle-class backgrounds, such as vegetable vendors and small traders, who invested amounts ranging from a few thousand rupees to crores.

Seven individuals who filed the police complaint claimed they collectively invested over Rs 13 crore.

One investor said she was introduced to the scheme by her friends and initially received payouts.

Another investor explained that he trusted the scheme because the company brochure featured official GST and CIN numbers, according to the NDTV report.

Shortly after the scam came to light, Torres’s official YouTube account uploaded a video alleging that its CEO, Tausif Reyaz, and Chief Analyst, Abhishek Gupta, orchestrated a coup to rob the company.

"Under the leadership of two Torres employees, CEO Tausif Reyaz and Chief Analyst Abhishek Gupta, a coup was organised in the team tonight and Torres stores were robbed," the voiceover claimed, according to the report.

The video showed footage of people vandalising stores and taking money, with the voiceover describing them as "accomplices" of Reyaz and Gupta.

It further alleged, "Earlier, we learnt that they organised a fraudulent scheme and systematically appropriated the company's money for many months... Realising that punishment was inevitable for them, they decided to involve other employees in their crime."