• Fraudsters collect investments under the pretense of gold trading or other high-return ventures.
• Initial investors may receive small payouts (funded by new investors), creating a false sense of legitimacy.
• The scheme eventually collapses, and the masterminds disappear with the money.
• Example: Heera Gold Ponzi Scheme – Investors lost crores due to fake gold investment plans.

5. Heera Gold Ponzi Scheme (2018)

Steps of the Fraud:

1. Establishment of Investment Scheme: Heera Group, led by Nowhera Shaik, offered investment opportunities in gold trading, promising high returns to investors.
2. Attraction of Investors: The scheme attracted a large number of investors, particularly from the Muslim community, by branding itself as a halal investment opportunity.
3. Collection of Funds: Investors deposited substantial amounts of money into the scheme, lured by the promise of lucrative returns.
4. Default on Payments: Over time, the company failed to provide the promised returns, leading to suspicion and complaints from investors.
5. Legal Intervention: Investigations revealed that the scheme was fraudulent, resulting in the arrest of Nowhera Shaik and the initiation of legal proceedings.