Hyderabad – Former world billiards champion Michael Ferreira, along with three others, has been arrested in connection with a multi-level marketing fraud involving the company QNet, amounting to Rs 400 crore. The accused were brought to Hyderabad from Mumbai after a court granted transit remand to the Hyderabad Police.
The police team from Hyderabad had earlier submitted a request for their custody as part of the ongoing investigation into the case. A senior official from the Central Crime Station (CCS) of the Hyderabad Police confirmed that Ferreira and the other directors were arrested and brought to Hyderabad for further questioning.
Ferreira, along with the other accused, was initially detained by the Mumbai Police’s Economic Offences Wing (EOW) on September 30 this year. The EOW had already arrested 19 individuals as part of the investigation into QNet’s fraudulent activities.
QNet, along with its franchise firms, allegedly promoted products such as magnetic disks with “healing” properties, herbal medicines, and holiday schemes. The company is also accused of operating using the banned “binary pyramid” model and deceiving investors who were promised substantial returns. The FIR was filed in Mumbai in August 2013 under the Prize, Chits, and Money Circulation Schemes (Banning) Act, 1978, and the Maharashtra Protection of Interest of Depositors Act.
The special public prosecutor in Mumbai had previously stated that Michael Ferreira owned 80% of the shares in a franchisee of QNet, Vihaan Direct Selling India Pvt Ltd, which serves as the master franchise of QNet in India. Prosecutors claim QNet’s operation was a Ponzi scheme, where investors were asked to invest between Rs 30,000 and Rs 7.5 lakh, with no returns ever being delivered.
Further investigations revealed that the money generated by QNet was allegedly laundered and moved out of the country. The authorities are now focusing on uncovering the ultimate destination of these funds. Multiple complaints have been filed against QNet and its subsidiaries across several states, including Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Delhi, and Telangana.
Ferreira’s involvement in the company and the ongoing probe is also examining how the company allegedly targeted unemployed individuals and software engineers under the guise of providing business opportunities and employment. Police have reported around 60 complaints received from the city regarding QNet’s fraudulent activities.
The four accused will be presented in a local court, where police will seek further custody for interrogation.
