As part of a crack-down on promoters of dubious multi-level marketing schemes, Andhra Pradesh police today arrested two top officials of a private firm in Kurnool district for cheating investors to the tune of Rs 10 crore.
According to Yemmiganur police, Malyadri and Venkateshwarlu set up the company in Ongole town of Prakasam district in 2011, and started collecting money for various investment schemes.
"They collected a total of Rs 19 crore from thousands of depositors and initially gave high returns, but later they began to default on payments," a police officer said.
The two were booked for cheating and criminal breach of trust under the Indian Penal Code, and under the AP Protection of Depositors of Financial Establishments Act.
