Michael Ferreira, a former world billiards champion and Padma Bhushan awardee, has been arrested in connection with a massive Rs 400 crore fraud case involving the multi-level marketing company QNet. Ferreira, along with three other accused individuals, was taken into custody by the Hyderabad Police after being transferred from Mumbai.
Last week, the Hyderabad Police submitted a request for custody to continue the investigation, following which a Mumbai court granted transit remand. The accused, including Ferreira, were brought to Hyderabad for further questioning.
The Economic Offences Wing (EOW) of the Mumbai Police had arrested Ferreira and the others on September 30 in connection with the QNet fraud case. The EOW had previously detained 19 individuals involved in the scam.
QNet and its affiliated companies are accused of selling products such as “healing” magnetic disks, herbal medicines, and holiday packages. The company allegedly utilized a banned pyramid scheme model to deceive investors, promising high returns which were never delivered. The case against QNet dates back to 2013, when an FIR was filed under the Prize, Chits, and Money Circulation Schemes (Banning) Act, 1978, and the Maharashtra Protection of Interest of Depositors Act.
Prosecutors claim that Michael Ferreira held 80% of the shares in a franchisee of QNet, Vihaan Direct Selling India Pvt Ltd, which served as the master franchisee in India. The company is alleged to have operated a Ponzi scheme, soliciting investments ranging from Rs 30,000 to Rs 7.5 lakh, with no returns paid out to the investors.
The investigation also suggests that funds generated by QNet’s activities were laundered and moved abroad. Authorities are working to track the destination of these funds. Multiple complaints have been filed across various states, including Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Delhi, and Telangana.
The police are also looking into allegations that QNet exploited unemployed individuals and software engineers, luring them with false promises of business and job opportunities. Hyderabad Police have received over 60 complaints against the company.
The four arrested individuals, including Ferreira, will be presented before a local court, and the police will request further custody for continued investigation.