Kavali police arrest Ponzi scheme mastermind
The police disclosed that Subhani attracted investments through agents who worked on commission, presenting schemes that promised daily, weekly and monthly returns
Tirupati: The Kavali rural police have arrested Mohammad Subhani, the alleged mastermind behind a multi-state Ponzi scheme that defrauded hundreds of investors across Andhra Pradesh, Telangana, and Karnataka. Subhani, 53, and his associate Y. Brahmanandam, 34, were apprehended near a truck parking area along NH-16 in Gauravaram on Sunday night.
The arrest came after an extensive investigation into fraudulent activities conducted under the name "Ananthartha Associates," a firm Subhani created to lure unsuspecting investors with promises of high returns through stock market trading. Kavali DSP P. Sridhar, speaking to the media on Monday, revealed that Subhani had previously carried out similar scams in Kakinada and Makthal and had been evading law enforcement for years.
“Subhani started his career as a computer lecturer in Narasaraopet after completing his MCA in Vijayawada. He later ventured into network marketing and gained knowledge in stock market trading. His operations soon expanded across Andhra Pradesh, Telangana and Karnataka, where he deceived investors with promises of substantial profits in a short period. Despite multiple cases registered against him in Kakinada and Makthal, Subhani managed to elude the police until his recent capture,” the DSP explained.
The police disclosed that Subhani attracted investments through agents who worked on commission, presenting schemes that promised daily, weekly and monthly returns. He manipulated records and fabricated fake profit statements to gain the trust of his victims. “The Ponzi scheme accumulated crores of rupees, much of which was diverted into properties registered under his name, his family members’ and his associates’ names,” said the DSP.
During the arrest, Kavali police seized assets worth nearly `15 crore, including `28.48 lakh in cash, two mobiles, a laptop and bank accounts with deposits totaling `5.36 crore. Additionally, properties valued at `5.74 crore were identified and frozen.
“Subhani exploited people's lack of financial knowledge, promising unbelievable returns. He never invested the collected money in the stock market; instead, he used it to pay earlier investors and buy properties. We are tracking every asset linked to the scam and working to ensure justice for the victims,” DSP Sridhar stated. He encouraged victims to come forward and share their grievances.