Invest Rs. 2 lakh in ‘Tip Top Future Package’, Take home Rs. 21 lakh
Swapnil Prajapati, the mastermind behind ways2capital.com and Highbrow Market Research, knows that novices are easily enticed by promises of huge gains, especially if they are backed by fancy sounding packages.
So, he lured people by offering various exotic packages by name ‘Tip Top Future Package’, ‘Option Signature Pack 99 Calls’, ‘Bonanza Agri Grand Premium’, ‘Smudge MCX Package’, ‘Happening MCX Package’, ‘Decisive cash package’, ‘Tried Blue Currency Package’ etc.
He also promised exorbitant returns.
Dipak Kumar Thakkar, a raw novice, feel hook, line and sinker for the claims.
He invested Rs. 68 lakh in anticipation of taking home Rs. 30 crore.
“My father got many calls from highbrow and company executive told him that we provide operator base work and it’s sure call so you will not have chance to lose money. Company executive lured my father to earn 30 crores by investing 68 lac…” he recounted, his eyes moist with tears.
Ashish Kumar Makati was assured of a return of 250% in just 45 days.
Naturally, he rushed to hand over Rs. 72 lakh of his hard-earned money.
“Till date I have made a total investment of Rs 72,45,738 in the scheme of the company from my various bank accounts and credit cards to the various payment methods of the company. I was asked by their promoters to subscribe to higher package with a commitment to me of return of 2.5 times of my investment in 45 days’ time,” he told SEBI.
Antos Vaz, who dreamed of riches through intra-day trading, was also fooled by Highbrow.
He was promised returns of 350% through intra-day tips.
“…If I pay and Opt for a service of X amount I will be provided intra-day tips which will provide a profit of 3.5 X amount….,” he reminiscenced.
Threaten clients with forfeiture of old packages if they do not subscribe to new packages
Highbrow Market Research adopted a brilliant “carrot and stick” modus operandi by which they exploited the “greed and fear” tendencies of their clients.
They followed the strategy of showing that some amount is always remaining to be paid by the client and putting the client under pressure to pay the same.
A strict deadline was imposed and the client was threatened with forfeiture if he did not pay up or subscribe to a new package.
Anto S Vaz‘s case is a textbook example of how the scam worked.
He subscribed for the services of Highbrow and paid Rs. 5,000.
Within the very first month of his joining, Highbrow had taken payment of Rs. 8,71,819 from him.
During this very month 5 packages (i.e. Decisive Cash Package, Candid Cash Package, 2 separate Bounce Cash Packages and Locomote Cash Package) were sold to him.
In fact, Antos Vaz was so gullible that he paid for the same package on two occasions.
“Multiple Packages have been sold to Mr. Vaz over a period of around 2 months. Several packages have been sold twice or more. It is surprising to note that the payment receipts mention the tenure of service till the target profit is achieved, but even then, the same package is again sold to the client. For instance, Locomote Cash Package was first sold to Mr. Vaz on October 11, 2017 and then again on October 13, 2017 another Locomote Cash Package was sold to him before the tenure of the earlier package could end or the target could be achieved,” Hon’ble Madhabi Puri Buch of SEBI has observed in an incredulous tone.
A holy grail guide to be Twitter's No.1 trader.
Step 1: Make FD of few crores.
2: Mark FD as margin at a broker.
3: Take large positions.
4: Take counter positions in another a/c
5: One account will be in profit.
6: Share the screenshot.
7: You are the Boss.@Amit_Gulecha
— Yatharth VASHISHTH (@yatharth_v) May 24, 2019
@NSEIndia @BSEIndia #SEBI some serious regulation needs to come for social media for so called traders who daily post their collective clients MTM on twitter and then try to lure innocent retail investors to come and attend their seminars and teach them options writing 1/n
— equipolitico (@equipolitico) May 30, 2019
Highbrow rakes in Rs. 105 crore
It is unbelievable but true that by making outlandish claims of exorbitant gains, ways2capital.com and Highbrow Market Research raked in a massive fortune of Rs. 105 crore.
“It is noted that an amount of Rs. 105,15,53,705 has been collected by Highbrow prima facie through fee for fraudulent investment advisory activity,” SEBI noted.
Freezing of bank accounts is too late?
Madhabi Puri Buch, the WTD of SEBI who passed the order, is a highly seasoned captain of corporate India.
She was earlier the Executive Director of ICICI Bank and is well-versed with the shenanigans of fraudsters.
She has rightly observed that if it is found that the money was taken by Highbrow from the clients in prima facie violation of the applicable law, and the claims of the clients are found to be genuine, Highbrow would be liable to refund the money collected by it from the clients subject to the adjudication of the allegations on merits.
She has also noted that during the pending detailed examination in the matter, there is a possibility that Highbrow may divert the money collected from the clients.
She has accordingly frozen the bank accounts.
However, as usual, the law is too late to catch up.
Swapnil Prajapati and the other masterminds behind Highbrow have already withdrawn Rs. 103 crore from the bank accounts.
This implies that there is very little, if any, left in the bank accounts to be returned to the gullible novices!
‘Stock Guru’ ripped investors off Rs. 1100 crore
The scam perpetrated by ways2capital.com and Highbrow Market Research appears to be loose change when we compare it with the scam undertaken by Lokeshwar Dev Jain and Priyanka Dev Jain.
The duo set up a company named “Stock Guru India” and promised to double investors’ money.
They raked in Rs. 1100 crore and disappeared into thin air before anyone even suspected something was wrong.
The duo was caught by the police though no update is available whether they were sentenced for their crimes and whether any money was recovered!