IMPHAL Oct 15: Jainex International Trade or commonly known as JIT market duped thousands of investors of the state as the website hosted by the alleged company offering financial services became unavailable all of a sudden.
Pandemonium broke out at Khagempalli Pankha early morning today when an irate mob of investors on learning about the news of the vanished website came to the residence of one Huidrom Nandakumar (55), who is said to be key person behind company’s operation in the state.
Nandakumar, resident of Khagempalli Pankha is presently an executive engineer in the Manipur Development Society.
A huge crowd which had gathered at his residence started demanding their money back as they were suspicious of the company’s intent following sudden disappearance of website.
ISTV video: http://www.youtube.com/watch?v=gbjXrEhiQlk
Nandakumar reportedly owned up that the network is busted as there could be no financial transaction to the company following the arrest of the head of the company identified as one Vijay Dhariwal of Bangalore by Karnataka police.
As the outraged mob became furious, a team of police commando arrived in the nick of time and whisked Nandakumar away from his residence.
Talking to IFP, an investor Sanatombi said “I had invested more than Rs 2 lachs just day before yesterday and today we came to know that the website has vanished, I pawned my gold ornaments to join the network, now I don’t know what to do and where to complain”. Everyone present at the time had a similar story to tell.
According to reports, some 3000 people of the state have invested money with Jiainex ranging from Rs 50,000 upto Rs 10 lacs individually from September 21, 2010 onwards. More than Rs. 40 crores are speculated to have been be deposited by the investors to the Jiainex account.
Nandakumar is reportedly still at Kakwa Police station at present and no case has been registered against him so far. When IFP contacted OC of Kakwa police stated that there have been no formal complaint lodged against Nandakumar by anyone so far.
According to a brochure, Jainex International Trade is a major financial company of China and offers investment advisory and financial planning services. One can invest in the company without limit and get 15% daily for 75 working days on a daily basis and also get 10% referral income.
Surprisingly, the Chinese company has it’s administrative office at Amrali, Bangalore and conducts cash transactions through ING Vyasa Bank under A/C No.509011017895. The website of the company is www.jitmarket.com.
Based on a study of Pyramid Schemes (Networks) or Multi Level Marketing Schemes, illegal money making schemes such as Jainex are modified and adapted to suit the victims. They may be disguised as mail order operations, chain letters, buying clubs or investment companies. Most networks are intent on exploiting people with limited means and little knowledge of business such as individuals with little experience in direct sales, distributorship or franchise enterprises or who have little money or credit to establish their own business. Many victims of these scams sell first to their friends.
When the money making opportunity goes belly up, most people lose not only their money but also their friends. It is a mathematical fact that the network must break down because the pool of possible recruits become exhausted and recruitment stops. Those at the bottom of the pyramid, the vast majority of the participants, lose money. All pyramid schemes will begin to die when later recruits don’t sign on in numbers large enough to pay off earlier recruits, many losers paying a few winners.
The pyramid promoter is likely to persuade the investor that he is “getting in early” and should consider himself at the top of the matrix and most participants don’t envision themselves anywhere near the bottom layer of the pyramid. The con artist at the top views the investor as a predictable set of revenues and expenses,with the revenues flowing directly to him. He happily pays out commissions for the recruitment effort of others.
As the losers rarely advertise the truth of their folly, the myth of the success of the network still remains.
It may be mentioned that many networks have emerged now and then in the state. According to Pyramid Scheme Alert, a non profit NGO, the latest network scams are carried out on the internet called Ponzi schemes which operate by paying earlier investors with money deposited by later investors without emphasizing on recruitment or awareness of participation structure. By using the internet, a con man operating from Delhi can modify the network to seem that it is being uploaded from Malaysia, UK, China etc.
The networks operating on the internet and doing good “business” in Manipur are VISAREV, FOREX, STOCKGURU, UNIPAY, UNIGOLD 2 U etc.
Travel Ventures International (TVI) was the first internet networking company to operate in the state. According to sources, more than 5000 people have lost their money in investing to the network business.